Is Equifax Stock Attractive After Its Steep One-Year Price Decline?

Equifax reported second-quarter 2026 revenues of $1.70 billion, up 10.6% year over year. Adjusted earnings were $2.25 per share, up 12.5%, with both metrics modestly ahead of consensus expectations.

The growth was not narrow. U.S. Information Solutions revenue rose 17%, helped by 40% mortgage revenue growth and better diversified-market trends. Workforce Solutions gained 7%, with verification services also up 7% on strength in Talent Solutions and Consumer Lending.

Management kept its full-year revenue guidance at $6.71 billion to $6.78 billion. That points to reported revenue growth of 10.5-11.6% for 2026, supported by mortgage services, verification offerings and new products.

The valuation case is less clear. At $187.89, EFX trades not far below the $196 price target, leaving only modest potential appreciation implied by that target.

The stock’s forward price-to-earnings ratio is about 19.8X. That is above the sub-industry multiple, limiting the argument that the shares are cheap after the sell-off.

The multiple is also below Equifax’s five-year median, giving long-term investors some valuation support. The result is a mixed setup rather than a clear discount.

TransUnion competes in consumer credit reporting and related analytics, making it a useful reference point for investors weighing whether weakness in EFX is company-specific or part of a broader credit-data valuation reset.

Estimate trends have not fully backed the recovery argument. The Zacks Consensus Estimate for fiscal-year earnings has moved slightly lower over the past one, four and 12 weeks.

That matters because estimate revisions are central to the near-term stock setup. A falling estimate path can keep investors cautious, even when quarterly revenue and adjusted earnings growth remain positive.

Share-price momentum sends a conflicting message. EFX has posted stronger four-week and 12-week performances, suggesting buyers have stepped in recently.

Still, the 52-week return remains sharply negative, and the Momentum Score of F signals weak momentum characteristics. That makes the rebound look incomplete.

Cash generation remains a meaningful offset. Management expects more than $1 billion of free cash flow in 2026 and cash conversion above 100%, which should support investment, dividends and share repurchases.

Equifax returned $366 million to shareholders in the second quarter, including $300 million of repurchases and $66 million of dividends. That shows management is still allocating capital to shareholders while funding growth initiatives.

Balance sheet risk should not be dismissed. The current ratio of 0.60 indicates limited short-term liquidity coverage, while the debt-to-equity ratio of 0.92 points to meaningful leverage.

The planned acquisition of Círculo de Crédito for an enterprise value of $750 million could add strategic reach in Mexico, but it also raises future capital demands. Experian’s global credit-data footprint gives investors another comparison point when judging Equifax’s international growth ambitions.

The bottom line is that EFX looks more like a patient-investor candidate than a clear buying opportunity after its one-year decline. Growth is intact, but upside to the price target is limited and the estimate-revision backdrop is not decisively positive.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

That points to a neutral near-term earnings-revision setup rather than a strong positive or negative signal.

Equifax has a Value Score of B and a Growth Score of B, which are constructive for investors focused on valuation and growth quality. Its VGM Score of C is more balanced, while the Momentum Score of F weakens the overall profile.

For investors already comfortable with Equifax’s business quality and cash-flow outlook, the decline may justify a closer look. For new buyers, the stock still lacks a strong all-around signal.

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