Verisk Ties Up With Driveway To Improve Product Portfolio

Leading data analytics provider Verisk Analytics, Inc. (NASDAQ:VRSK) recently announced a strategic collaboration with Driveway Software. Per the deal, the companies will work jointly to develop a complete smartphone telematics solution for OEMs (original equipment manufacturers), customers and insurers in the U.S. and worldwide through the Verisk Data Exchange.

Headquartered in Silicon Valley, Driveway developed and patented a wireless car technology that allows insurers measure and reward good driving behavior. The company offers a suite of cloud platform and mobile apps that are cost effective. Additionally, it also provides a frictionless usage-based insurance (UBI) solution, which is primarily utilized by top insurers worldwide.

The companies will jointly develop software using Driveway’s smartphone telematics platform for data collection and Verisk Data Exchange solution to provide a bridge between consumers and participating insurers. The solution will utilize Driveway’s patented battery-efficient trip-capture technology and Verisk`s insurance analytics to enable customers benefit from telematics through improved connectivity.

In Jul 2016, Verisk launched Exchange, the first-of-its-kind data for driving history. This technology gives car owners the option to provide their driving data and seamlessly avail insurers’ UBI programs, designed to reward safe drivers. General Motors Company (NYSE:GM) is the first auto manufacturer to use the Verisk Data Exchange.

Verisk outperformed the Zacks categorized Business Information Services industry with an average return of 0.3% as against 8.8% decline for the latter, over a period of 90 days. In addition, over the same time frame, earnings estimates have increased 2.3% for the current year to 3.07 per share, further signifying inherent fundamental strength.

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A few days back, the company expanded its product portfolio with the launch of its new Label Generator, which provides solution for on-demand hazard communication to enhance workplace safety. Such strategic deals have been accretive to the company’s top line and revenues have shown a steady increase over the past couple of years.

Verisk aims to create long-term value through organic growth and higher return on invested capital. The company continuously seeks to expand its portfolio by leveraging its deep knowledge and embedded position to develop new, proprietary data sets and predictive analytics, by working in unison with its customers to understand their evolving needs. The company continues to extend its footprint in new markets, with healthy long-term growth potential, through targeted international expansion. This holistic growth model is expected to strengthen its leading position in the market.

We are encouraged by this Zacks Rank #2 (Buy) stock’s latest collaboration. A couple of other favorably ranked stocks in the industry include LifeLock, Inc. (NYSE:LOCK) and Exponent Inc. (NASDAQ:EXPO) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LifeLock is currently trading at a forward P/E of 40.7x and has beaten estimates thrice over the trailing four quarters with an average positive earnings surprise of 20.0%.

Exponent has a long-term earnings growth expectation of 12.0% and is currently trading at a forward P/E of 39.2x.

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