We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Global Payments, Total System, LexinFintech, Intuit and PayPal
Read MoreHide Full Article
For Immediate Release
Chicago, IL –May 30, 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 - Free Report) , Total System Services, Inc. , LexinFintech Holdings Ltd. (LX - Free Report) , Intuit Inc. (INTU - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 FinTech Stocks to Buy on Changing Consumer Preference
The rise in financial technology (FinTech) is changing the way consumers use financial services. Increased dependency on smartphones, tablets and other connected devices is spurring demand for mobility in the financial services sector. This demand is not only driving the way consumers interact with money but also the way financial companies operate.
Therefore, investors keen on FinTech companies can invest in stocks gaining from high demand.
Changing Payment Preferences Driving FinTech
FinTech’s largest contribution to America’s booming millennial population is the flexibility it offers for payments. Mobility largely defines this flexibility, which is precisely what drives consumer preference toward digital payment systems.
At present, 83.1 million millennials comprise the U.S. population, which makes them the largest generation in America’s history, a Forbes report cited. Therefore, it’s no surprise that millennial payment preferences should play a vital role in the growing usage of digital payment systems.
A Visa report in 2018 cites that not only do millennials use cards more than other segments, but also are likely to increase spending as they grow older. They are also welcoming to new and emerging payment products. This rising preference for debit/credit cards among the largest constituents of America’s current workforce is a crucial factor driving the payment industry today.
Michael Marx, senior director at Visa, Inc., noted that consumers are using card-based payments and electronic funds transfer instead of paper checks, depending on different merchants’ payment acceptance practices.
Businesses have begun to adapt themselves to meet consumer preference for digital payment systems. This is why many retailers and restaurants are now eliminating cash payments. The process not only helps diminish long queues and increase the number of transactions on a per hour basis but also saves companies’ money on transportation of cash.
It is this rising trend for digital financial payment and services that has drawn the attention of established financial services giants. These companies are entering into M&As with FinTech companies to increase the perimeter of their financial services.
FinTech M&As Boost Operational Efficiency
Mergers and acquisitions raise the scope of business and services for financial services organizations and Fintech companies as well as increase their asset valuations.
Well-established financial companies can also boost their operational efficiency through these collaborations. Improved security protocols, biometrics, new technologies such as AI, machine learning and blockchain in financial services, all of which are offered by FinTech companies are vital in enhancing operational efficiency. Data handling and management can also be advanced through FinTech. This makes digital transformation faster.
In fact, the steep rise in M&As in the financial services sector this year is indicative of companies’ growing acknowledgement of demand for digital financial services. These businesses are fast realizing that consolidation rather than competition with FinTech companies raise the scope of their business and services.
Earlier in January, Fiserv, the financial services technology company whose services are the base for most common banking transactions, announced a merger worth $22 billion with First Data. First Data’s Clover, which is a point-of-sale (POS) platform, has more than a million merchant devices used across the globe. Undoubtedly, the deal adds more value to this POS technology that competes with Square.
This deal marked the beginning of several other M&As among other FinTech companies. Fidelity National Information Services announced in March plans of buying payment processing company Worldpay for about $35 billion. Payment technology companies Global Payments Inc. and Total System Services, Inc. have also agreed on a stock merger of equals, CNBC reported earlier this week.
4 Stocks to Buy
We have picked four FinTech stocks that you could consider adding to your portfolio. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
LexinFintech Holdings Ltd. operates as an online consumer finance platform. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen 3.7% over the past 30 days. The company’s stock price has outperformed the Zacks Financial – Consumer Loans Market on a year-to-date basis (+69.4% vs +25.8%).
Global Payments Inc.is a payment technology and software solutions provider for card, electronic, check and digital-based payments. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 1.2% over the past 30 days. The company’s stock price has outperformed the Zacks Financial Transaction Services Market on a year-to-date basis (+44.3% vs +28.3%).
Intuit Inc.is a provider of financial management and compliance products and services. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 0.4% over the past 30 days. The company’s stock price has outperformed the Zacks Computer – Software Market on a year-to-date basis (+29.9% vs +23.2%).
PayPal Holdings, Inc.is a technology platform and digital payments company. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 4.2% over the past 60 days. The company’s stock price has outperformed the Zacks Internet – Software Market on a year-to-date basis (+32.9% vs +27.5%).
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.”
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Global Payments, Total System, LexinFintech, Intuit and PayPal
For Immediate Release
Chicago, IL –May 30, 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 - Free Report) , Total System Services, Inc. , LexinFintech Holdings Ltd. (LX - Free Report) , Intuit Inc. (INTU - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 FinTech Stocks to Buy on Changing Consumer Preference
The rise in financial technology (FinTech) is changing the way consumers use financial services. Increased dependency on smartphones, tablets and other connected devices is spurring demand for mobility in the financial services sector. This demand is not only driving the way consumers interact with money but also the way financial companies operate.
Therefore, investors keen on FinTech companies can invest in stocks gaining from high demand.
Changing Payment Preferences Driving FinTech
FinTech’s largest contribution to America’s booming millennial population is the flexibility it offers for payments. Mobility largely defines this flexibility, which is precisely what drives consumer preference toward digital payment systems.
At present, 83.1 million millennials comprise the U.S. population, which makes them the largest generation in America’s history, a Forbes report cited. Therefore, it’s no surprise that millennial payment preferences should play a vital role in the growing usage of digital payment systems.
A Visa report in 2018 cites that not only do millennials use cards more than other segments, but also are likely to increase spending as they grow older. They are also welcoming to new and emerging payment products. This rising preference for debit/credit cards among the largest constituents of America’s current workforce is a crucial factor driving the payment industry today.
Michael Marx, senior director at Visa, Inc., noted that consumers are using card-based payments and electronic funds transfer instead of paper checks, depending on different merchants’ payment acceptance practices.
Businesses have begun to adapt themselves to meet consumer preference for digital payment systems. This is why many retailers and restaurants are now eliminating cash payments. The process not only helps diminish long queues and increase the number of transactions on a per hour basis but also saves companies’ money on transportation of cash.
It is this rising trend for digital financial payment and services that has drawn the attention of established financial services giants. These companies are entering into M&As with FinTech companies to increase the perimeter of their financial services.
FinTech M&As Boost Operational Efficiency
Mergers and acquisitions raise the scope of business and services for financial services organizations and Fintech companies as well as increase their asset valuations.
Well-established financial companies can also boost their operational efficiency through these collaborations. Improved security protocols, biometrics, new technologies such as AI, machine learning and blockchain in financial services, all of which are offered by FinTech companies are vital in enhancing operational efficiency. Data handling and management can also be advanced through FinTech. This makes digital transformation faster.
In fact, the steep rise in M&As in the financial services sector this year is indicative of companies’ growing acknowledgement of demand for digital financial services. These businesses are fast realizing that consolidation rather than competition with FinTech companies raise the scope of their business and services.
Earlier in January, Fiserv, the financial services technology company whose services are the base for most common banking transactions, announced a merger worth $22 billion with First Data. First Data’s Clover, which is a point-of-sale (POS) platform, has more than a million merchant devices used across the globe. Undoubtedly, the deal adds more value to this POS technology that competes with Square.
This deal marked the beginning of several other M&As among other FinTech companies. Fidelity National Information Services announced in March plans of buying payment processing company Worldpay for about $35 billion. Payment technology companies Global Payments Inc. and Total System Services, Inc. have also agreed on a stock merger of equals, CNBC reported earlier this week.
4 Stocks to Buy
We have picked four FinTech stocks that you could consider adding to your portfolio. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
LexinFintech Holdings Ltd. operates as an online consumer finance platform. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen 3.7% over the past 30 days. The company’s stock price has outperformed the Zacks Financial – Consumer Loans Market on a year-to-date basis (+69.4% vs +25.8%).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Payments Inc.is a payment technology and software solutions provider for card, electronic, check and digital-based payments. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 1.2% over the past 30 days. The company’s stock price has outperformed the Zacks Financial Transaction Services Market on a year-to-date basis (+44.3% vs +28.3%).
Intuit Inc.is a provider of financial management and compliance products and services. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 0.4% over the past 30 days. The company’s stock price has outperformed the Zacks Computer – Software Market on a year-to-date basis (+29.9% vs +23.2%).
PayPal Holdings, Inc.is a technology platform and digital payments company. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 4.2% over the past 60 days. The company’s stock price has outperformed the Zacks Internet – Software Market on a year-to-date basis (+32.9% vs +27.5%).
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
http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.