What Happened?
Shares of credit reporting company TransUnion (NYSE: TRU) jumped 3.5% in the afternoon session after the company reported strong second-quarter earnings that surpassed expectations and raised its full-year guidance. The credit reporting company announced second-quarter revenue of $1.14 billion, a 10% increase from the prior year, and adjusted earnings of $1.08 per share. These results surpassed Wall Street's expectations. The strong performance was reportedly driven by its U.S. Financial Services segment. Adding to the positive news, TransUnion raised its full-year 2025 forecast. The company now expected adjusted earnings per share in a range of $4.03 to $4.14, with organic revenue growth between 6% and 7%. This report marked the seventh consecutive quarter that the company had exceeded its own financial guidance, signaling consistent operational strength.
After the initial pop the shares cooled down to $98.19, up 3.9% from previous close.
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What Is The Market Telling Us
TransUnion’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 6.6% on the news that the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains. However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels. Still, the agreement has cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism. The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand.
TransUnion is up 6.9% since the beginning of the year, but at $98.19 per share, it is still trading 9.6% below its 52-week high of $108.67 from October 2024. Investors who bought $1,000 worth of TransUnion’s shares 5 years ago would now be looking at an investment worth $1,094.
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