Is Equifax Inc. (EFX) A Good Stock To Buy?

As one would reasonably expect, key money managers have jumped into Equifax Inc. (NYSE:EFX) headfirst. Echo Street Capital Management, managed by Greg Poole, created the most outsized position in Equifax Inc. (NYSE:EFX). Echo Street Capital Management had $28.2 million invested in the company at the end of the quarter. David Forster and Peter Wilton’s IBIS Capital Partners also made a $15.6 million investment in the stock during the quarter. The following funds were also among the new EFX investors: David Harding’s Winton Capital Management, Bruce Kovner’s Caxton Associates LP, and Ray Dalio’s Bridgewater Associates.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Equifax Inc. (NYSE:EFX) but similarly valued. These stocks are Tata Motors Limited (ADR) (NYSE:TTM), Tractor Supply Company (NASDAQ:TSCO), Cheniere Energy, Inc. (NYSEAMEX:LNG), and Agilent Technologies Inc. (NYSE:A). All of these stocks’ market caps resemble EFX’s market cap.

As you can see these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $2265 million. That figure was $439 million in EFX’s case. Cheniere Energy, Inc. (NYSEAMEX:LNG) is the most popular stock in this table. On the other hand Tata Motors Limited (ADR) (NYSE:TTM) is the least popular one with only 22 bullish hedge fund positions. Equifax Inc. (NYSE:EFX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LNG might be a better candidate to consider a long position.