Verisk Analytics (VRSK) has broken out of a nine-week, classic double bottom base. The move carries the stock to a new all-time high and the stock's momentum indicator is solidly bullish, explains Leo Fasciocco, editor of Ticker Tape Digest..
The company provides data analytics to customers in insurance, natural resources and financial services. Annual revenues are $2.1 billion.
VRSK's risk assessment unit serves its property and casualty insurance customers and focuses on prediction of loss, selection and pricing of risk, and compliance with their reporting requirements.
The decision analytics unit develops predictive models to forecast scenarios and produce both standard and customized analytics that help its customers manage their businesses, including predicting loss, selecting and pricing risk and detecting fraud.
This year, analysts are forecasting a 29% jump in net to $4.15 a share from the $3.21 a year ago. The stock sells with a price-earnings ratio of 29.
Profits for the upcoming fourth quarter are projected to jump 32% to $1.07 a share from the 81 cents the year before. The highest estimate on the Street is at $1.09 a share from 9 analysts.
We see chances for a modest "beat." The company topped the consensus estimate the past four quarters by one cent a share, 5 cents, one cent and three cents.
Going out to 2019, analysts predict a more modest 9% increase in net to $4.50 a share from the anticipated $4.15 this year. Net for the first quarter of 2019 is projected to climb 12% to $1.05 a share from the 94 cents the year before.
We are targeting the stock for a move to $145 a share on this breakout. A protective stop can be placed near the $119 level.
