- VRSK
- FICO
Is VRSK a good stock to buy? We came across a bullish thesison Verisk Analytics, Inc. on THE ALPHA TRADER’s Substack by Warren. In this article, we will summarize the bulls’ thesis on VRSK. Verisk Analytics, Inc.’s share was trading at $190.87 as of October 20th 2026. VRSK’s trailing and forward P/E were 26.39 and 20.08 respectively
This isn’t the first time we see a data analytics company pitched as a great investment. Unfortunately, VRSK shares lost 19.62% of their value over the last 12 months. Comparable stocks like FICO and Moody’s lost 49.19% and 6.95%, respectively, during the same period. Businesses depend on data to assess risk and make decisions, but that hasn’t protected these stocks from falling share prices. Does VRSK’s recent recovery make this a good time to buy, or is there more reason for caution?
In June, we published an article about the 10 Most Profitable Industrial Stocks to Buy Now and VRSK ranked #4 in that article. VRSK gained 5.76% over the four months since then. So, hedge funds were right about VRSK. This article explains why hedge funds were bullish on VRSK. Before getting into our analysis, let’s take a look at the business and why some investors like the stock so much.
Verisk Analytics, Inc. (NASDAQ:VRSK) provides data and analytics services mainly to property and casualty (P&C) insurers. Its investment case revolves around whether Verisk Analytics can continue compounding as a high-quality data platform while the market still views it as a mature insurance analytics provider. After selling its energy and financial services businesses, Verisk Analytics now earns nearly all its revenue from P&C insurance.
About 90% of the largest P&C insurers use its products, and customer retention stays above 95%, meaning insurers rarely move away once they’re on the platform. That gives the company steady, predictable revenue. The stock trades more than 40% below its 52-week high of $322.92. Bulls see this pullback as an opportunity, arguing the market is undervaluing a critical risk-intelligence business that trades at roughly 16-19 times EV/EBITDA.
The bullish case rests on Verisk Analytics’s competitive moat, built on the idea that insurers will lean more heavily on advanced analytics as risks grow more complex. Years of industry-wide data give the company an edge in building accurate risk models, and switching away from its tools could hurt an insurer’s underwriting accuracy and regulatory compliance — which keeps customers locked in. As climate-related risks rise, bulls believe Verisk Analytics can expand beyond traditional insurance analytics into broader climate-risk and enterprise risk intelligence.
