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Should Alliance Data (ADS) Stock Be in Your Portfolio Now?
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Shares of Alliance Data Systems Corporation outperformed the Zacks categorized Financial Transaction Services industry in the last six months. Shares gained 10.23% compared to an 8.14% increase recorded by the industry. The company has seen its estimates moving up over the last four weeks, reflecting investor confidence in the stock.
Why Retain the Stock?
Organic growth is a key strength of Alliance Data. The company continues to display strength across all segments. LoyaltyOne should continue to benefit from BrandLoyalty owing to growth across Europe, Asia, the U.S. as well as expansion efforts in Canada. Epsilon remains well poised for growth due to improvement in auto, CRM, and data. Management anticipates the segment to record about 4% growth in 2017.
Alliance Data has made several strategic acquisitions to grow inorganically and has expanded in Europe, Asia and South America (especially Brazil). Backed by its solid financial strength and flexibility, Alliance Data is likely to pursue strategic acquisitions for international expansion. This, in turn, should open up solid revenue growth opportunities for it.
Alliance Data remains committed to pay back its shareholders. Its effective capital deployment incudes mergers and acquisitions as well as share buyback and dividend payouts. The company’s board has authorized a $500 million share buyback program. Notably, Alliance Data incorporated a major change in its shareholders return policy by initiating a quarterly dividend.
Riding on operational strength, the company expects revenues of $7.7 billion in 2017. Core earnings are projected to be $18.50, reflecting growth rate of about 10%.
Alliance Data carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the business service sector are Fiserv, Inc. , Green Dot Corporation (GDOT - Free Report) TransUnion (TRU - Free Report) .
Shares of Fiserv, which provides financial services technology worldwide, gained 14.7% in the last six months. The company carries a Zacks Rank #2 (Buy).
Shares of TransUnion Dot, which operates as a pro-consumer technology bank holding company, gained 10.93% in the last six months. The company carries a Zacks Rank #2 (Buy).
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
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Should Alliance Data (ADS) Stock Be in Your Portfolio Now?
Shares of Alliance Data Systems Corporation outperformed the Zacks categorized Financial Transaction Services industry in the last six months. Shares gained 10.23% compared to an 8.14% increase recorded by the industry. The company has seen its estimates moving up over the last four weeks, reflecting investor confidence in the stock.
Why Retain the Stock?
Organic growth is a key strength of Alliance Data. The company continues to display strength across all segments. LoyaltyOne should continue to benefit from BrandLoyalty owing to growth across Europe, Asia, the U.S. as well as expansion efforts in Canada. Epsilon remains well poised for growth due to improvement in auto, CRM, and data. Management anticipates the segment to record about 4% growth in 2017.
Alliance Data has made several strategic acquisitions to grow inorganically and has expanded in Europe, Asia and South America (especially Brazil). Backed by its solid financial strength and flexibility, Alliance Data is likely to pursue strategic acquisitions for international expansion. This, in turn, should open up solid revenue growth opportunities for it.
Alliance Data remains committed to pay back its shareholders. Its effective capital deployment incudes mergers and acquisitions as well as share buyback and dividend payouts. The company’s board has authorized a $500 million share buyback program. Notably, Alliance Data incorporated a major change in its shareholders return policy by initiating a quarterly dividend.
Riding on operational strength, the company expects revenues of $7.7 billion in 2017. Core earnings are projected to be $18.50, reflecting growth rate of about 10%.
Alliance Data carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the business service sector are Fiserv, Inc. , Green Dot Corporation (GDOT - Free Report) TransUnion (TRU - Free Report) .
Shares of Green Dot, which operates as a pro-consumer technology bank holding company, gained 41.46% in the last six months. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Fiserv, which provides financial services technology worldwide, gained 14.7% in the last six months. The company carries a Zacks Rank #2 (Buy).
Shares of TransUnion Dot, which operates as a pro-consumer technology bank holding company, gained 10.93% in the last six months. The company carries a Zacks Rank #2 (Buy).
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>