Is TRU Stock Worth Buying as Growth Improves but Debt Stays High?

TRU’s Growth Profile Has Strengthened

Second-quarter 2026 revenues increased 14.9% year over year to $1.31 billion. Adjusted earnings of $1.23 per share rose 13.9%, while organic constant-currency revenues grew 10%, indicating that the improvement extended beyond acquisition contributions.

U.S. Markets revenues advanced 11%. Financial Services revenues climbed 18% to $496.3 million, helped by credit and non-credit offerings, pricing actions and new client wins. Emerging Verticals revenues rose 9% to $353.9 million, adding breadth to the domestic growth profile.

TransUnion Trades at a Discount to Key Benchmarks

TRU trades at 15.0X forward 12-month earnings, below 18.8X for the Zacks sub-industry, 18.1X for the Zacks sector and 20.7X for the S&P 500. The stock also sits well below its five-year median multiple of 21.2X.

                                                                           Image Source: Zacks Investment Research

                                                                          Image Source: Zacks Investment Research

                                                                         Image Source: Zacks Investment Research

That discount creates a valuation argument, but it does not guarantee a rerating. Equifax Inc. EFX, another global data, analytics and technology company, operates in overlapping information-services markets and reinforces the competitive context in which investors are judging TRU’s valuation.

TRU’s Debt Load Still Constrains Financial Flexibility

TransUnion ended June with $5.59 billion in total debt and carries a debt-to-equity ratio of 1.07. The debt load has supported acquisitions and expansion, but it also raises operating costs and can reduce flexibility to pursue additional opportunities.

The leverage ratio declined to 2.6X, supported by adjusted EBITDA growth, while management continues to target a level below 2.5X. FactSet Research Systems Inc. FDS, a provider of integrated financial information and analytics, is another peer in the broader information-services group, highlighting the range of data-focused businesses competing for investor capital.

OneTru and Mexico Expand TransUnion’s Growth Options

OneTru gives TransUnion another avenue to build growth internally. The platform unifies data and analytics assets used for credit risk, marketing and fraud mitigation, and it is designed to improve scalability while reducing customer costs. Its pipeline is approaching $50 million.

International expansion adds another lever. TransUnion acquired approximately 94% of Trans Union de Mexico in March 2026, and the business was already performing ahead of acquisition assumptions by the second quarter. Management plans to broaden its data coverage, introduce TruIQ analytics and eventually migrate the business to OneTru.

TRU’s Ratings Favor Patience Over Aggression

The bottom line is that TRU’s improving growth and discounted valuation make the stock more interesting, but the debt burden keeps the risk-reward balance from becoming clearly bullish. Continued organic growth and further deleveraging would strengthen the case, while weaker execution could leave the valuation discount intact.

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

TransUnion also has a Value Score of B, Growth Score of B and VGM Score of B, signaling relatively favorable characteristics in those areas within the Zacks Style Score framework.

The Momentum Score of C is less supportive. Since the Style Scores are designed to complement the Zacks Rank, the current combination fits a patient stance rather than an aggressive buying case.

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This article originally published on Zacks Investment Research (zacks.com).

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