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.
Alliance Data (ADS) Acquires Bread to Boost Digital Offerings
Read MoreHide Full Article
Alliance Data Systems Corporation closed the buyout of Bread for $450 million in a cash-stock transaction to expand its digital offerings. The company had entered into the transaction on Oct 28, 2020.
Bread is a technology-driven digital payments company, offering an omni-channel solution to retailers and platform capabilities to bank partners. Thus, the addition of Bread will enable the acquirer to offer installment and buy now, pay later solutions at the point-of-sale to its brand partners. With increased adoption of digital payment among millennial and younger demographic, this acquisition is a strategic fit. Also, the coronavirus pandemic has augmented the adoption of digital technologies.
While Alliance Data, leveraging Bread’s technology can offer enhanced service to its brand partners, the latter can improve sales and customer loyalty that in turn will drive revenues. The acquisition of Bread will strengthen Alliance Data's Enhanced Digital Suite and is estimated to be accretive by the third year.
This Zacks Rank #3 (Hold) private label credit card processing firm for mid-market specialty retail stores in the United States has made several strategic acquisitions to ramp up growth. Acquisitions have helped the company expand international footprint, consolidate its position in digital agency, boost the LoyaltyOne business, strengthen position in the digital marketing channels as well as expand its omni-channel distribution capabilities. With solid financial strength and flexibility, we expect Alliance Data to pursue strategic acquisitions that support international expansion with solid growth opportunities.
Shares of Alliance Data have lost 25.4% year to date compared with the industry's increase of 9.6%. The company’s high-ROI Card Service segment, solid inorganic background, strong balance sheet and effective capital deployment bode well for growth.
Evertec delivered earnings surprise of 54.76% in the last reported quarter.
Usio delivered earnings surprise of 33.33% in the last reported quarter.
RentACenter delivered earnings surprise of 2.97% in the last reported quarter.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Alliance Data (ADS) Acquires Bread to Boost Digital Offerings
Alliance Data Systems Corporation closed the buyout of Bread for $450 million in a cash-stock transaction to expand its digital offerings. The company had entered into the transaction on Oct 28, 2020.
Bread is a technology-driven digital payments company, offering an omni-channel solution to retailers and platform capabilities to bank partners. Thus, the addition of Bread will enable the acquirer to offer installment and buy now, pay later solutions at the point-of-sale to its brand partners. With increased adoption of digital payment among millennial and younger demographic, this acquisition is a strategic fit. Also, the coronavirus pandemic has augmented the adoption of digital technologies.
While Alliance Data, leveraging Bread’s technology can offer enhanced service to its brand partners, the latter can improve sales and customer loyalty that in turn will drive revenues. The acquisition of Bread will strengthen Alliance Data's Enhanced Digital Suite and is estimated to be accretive by the third year.
This Zacks Rank #3 (Hold) private label credit card processing firm for mid-market specialty retail stores in the United States has made several strategic acquisitions to ramp up growth. Acquisitions have helped the company expand international footprint, consolidate its position in digital agency, boost the LoyaltyOne business, strengthen position in the digital marketing channels as well as expand its omni-channel distribution capabilities. With solid financial strength and flexibility, we expect Alliance Data to pursue strategic acquisitions that support international expansion with solid growth opportunities.
Shares of Alliance Data have lost 25.4% year to date compared with the industry's increase of 9.6%. The company’s high-ROI Card Service segment, solid inorganic background, strong balance sheet and effective capital deployment bode well for growth.
Stocks to Consider
Some better-ranked insurers from the same space are Evertec (EVTC - Free Report) , Usio Inc (USIO - Free Report) and RentACenter , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Evertec delivered earnings surprise of 54.76% in the last reported quarter.
Usio delivered earnings surprise of 33.33% in the last reported quarter.
RentACenter delivered earnings surprise of 2.97% in the last reported quarter.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>