The Zacks Analyst Blog Highlights: Global Payments, WEX, FleetCor Technologies and Cardtronics
For Immediate Release
Chicago, IL – May 22, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Global Payments, Inc. GPN, WEX Inc. WEX, FleetCor Technologies, Inc. FLT and Cardtronics PLC CATM.
Here are highlights from Tuesday’s Analyst Blog:
4 Payment Stocks to Gain from Strong Consumer Confidence
The payments industry, which is to a large extent driven by consumer spending is set for strong growth based on recent economic readings, which include a robust job outlook, rising wages and steady economic expansion.
Led by these, U.S. household sentiment hit its highest level in 15 years in early May. Although U.S.-China trade talks (one of the factors that can have far reaching adverse economic effects) are in limbo, the domestic economic strength is enough to keep consumers confident about their personal finances.
High consumer confidence will lead to increased spending. Since a large chunk of payments on spending is done via modes other than cash, such as debit and credit cards, mobile as well online, companies engaged across different verticals in the payments processing industry will be direct beneficiaries.
Recent Readings
Per the University of Michigan, the consumer sentiment index increased to 102.4 in May from 97.2 in April. The same came in ahead of analysts’ expectations of 97.5 and registered the highest level in a decade and half.
Also, the consumer confidence index reading, per the Conference Board, went up to 129.2 in April from 124.2 in March. Consumer confidence index, a key economic indicator which measures attitudes on economic prospects, exceeded analysts’ expectations of 126.9 and rebounded in April after a drop in March.
The consumer sentiment index, historically, is a mirror of consumer spending for the next three to six months and growing consumer confidence will prompt them to spend more. An increase in consumer spending is directly proportional to revenue growth for the companies in the payments space.
Payments Industry Set to Thrive
The payments space, which mostly consists of players offering various services in digital, electronic and card payments, has seen increased business volumes owing to fast adoption of these easy, convenient, flexible payment options by consumers.
The shift from cash in the payments industry is well underway and would magnify going forward, with newer technologies being adopted by the players.
Per Statista, in 2018, online sales of physical goods amounted to $504.6 billion and are projected to surpass $735 billion in 2023. Apparel and accessories retail e-commerce in the United States is projected to generate more than $138.7 billion in revenues by 2022.
The industry has risen 33% in a year’s time compared with the Zacks S&P 500 composite's gain of 3.6%.
Our Picks
Since the aforesaid sector is poised to gain from this encouraging reading on the sentiment level, picking stocks from the same will be a smart move. We have, thus, selected four stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Payments, Inc. is a leading player in the payments industry, providing payment technology and software solutions, and credit and debit card transaction processing. The Zacks Consensus Estimate for its current-year earnings has risen 0.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 16.7% compared with the industry’s estimated rally of 12.2%. Year to date, the stock has gained 44%.
WEX Inc. is a provider of commercial payment processing and information management solutions. The Zacks Consensus Estimate for its current-year earnings has risen 2.9% over the past 30 days. The company’s expected earnings growth rate for the current year is 12.8% compared with the industry’s estimated rally of 12.2%. Year to date, the stock has gained 44%.
FleetCor Technologies, Inc. is a leading independent global provider of fuel cards, commercial payment and data solutions, lodging and transportation management services, stored value solutions, and workforce payment products and services to businesses, retailers, commercial fleets, major oil companies, petroleum marketers and government entities in countries throughout North America, Latin America, Europe, Australia and New Zealand. The Zacks Consensus Estimate for its current-year earnings has risen 2.9% over the past 30 days. Year to date, the stock has gained 46%.
Cardtronics PLC is an operator of ATMs and will likely continue enjoying high demand as people still withdraw cash from ATMs to spend on their purchases. The Zacks Consensus Estimate for its current-year earnings has risen 4% over the past 30 days. Year to date, the stock has gained 28%.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cardtronics PLC (CATM) : Free Stock Analysis Report
FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report
WEX Inc. (WEX) : Free Stock Analysis Report
Global Payments Inc. (GPN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
