TransUnion’s (NYSE:TRU) 27% Share Price Surge Not Quite Adding Up
Those holding TransUnion (NYSE:TRU) shares would be relieved that the share price has rebounded 27% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Looking further back, the 17% rise over the last twelve months isn’t too bad notwithstanding the strength over the last 30 days.
Following the firm bounce in price, you could be forgiven for thinking TransUnion is a stock to steer clear of with a price-to-sales ratios (or “P/S”) of 4.2x, considering almost half the companies in the United States’ Professional Services industry have P/S ratios below 1.2x. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so lofty.
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