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Strength Seen in Nayax (NYAX): Can Its 6.2% Jump Turn into More Strength?

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Nayax (NYAX - Free Report) shares rallied 6.2% in the last trading session to close at $18.12. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.3% loss over the past four weeks.

The upside can be attributed to the strength of Nayax's technology platform that offers digital payment processing solutions to its clients in the unattended retail market. Consumers’ growing inclination to adopt digital means, a long-lasting trend inflicted by the COVID-19 pandemic, is expected to sustain investors’ confidence in Nayax’s platform. Processing more transactions using the platform and undertaking technology advancements to modernize the same is likely to boost payment processing fees (a revenue component) for NYAX.

It remains quite active on the merger and acquisition front, which solidifies the capabilities and expands the commercial reach of Nayax. Based on such growth-related initiatives, management expects to achieve long-term annual revenue growth of 35%.

This financial technology company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of -433.3%. Revenues are expected to be $49.1 million, up 44.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Nayax, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NYAX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Nayax belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Envestnet (ENV - Free Report) , closed the last trading session 0.5% higher at $65.47. Over the past month, ENV has returned 22%.

For Envestnet, the consensus EPS estimate for the upcoming report has changed +0.9% over the past month to $0.44. This represents a change of -6.4% from what the company reported a year ago. Envestnet currently has a Zacks Rank of #3 (Hold).


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