Back to top

Image: Bigstock

Nayax (NYAX) Surges 6.1%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Nayax (NYAX - Free Report) shares soared 6.1% in the last trading session to close at $20.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.9% loss over the past four weeks.

Nayax extended its rally for the second straight day, driven by its acquisition deal announced on Oct 30 with the worldwide leader in retail Point of Sale (POS) software, Retail Pro International. Subject to the fulfillment of customary closing conditions, the transaction is likely to be completed in the fourth quarter of 2023. The buyout of Retail Pro is expected to fetch widespread benefits to NYAX post-completion in the form of broadening the scope of its retail business, expanding its distribution network and adding roughly 150,000 POS lanes.

Nayax relies on a merger and acquisition (M&A) strategy in a bid to enhance its capabilities and expand its commercial reach. M&A activities, coupled with organic growth efforts, keep management optimistic to achieve annual growth of 35% over the long term.

This financial technology company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +70%. Revenues are expected to be $62.1 million, up 31.4% 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 #3 (Hold). 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, Nuvei Corporation (NVEI - Free Report) , closed the last trading session 2.3% higher at $13.89. Over the past month, NVEI has returned -8.1%.

For Nuvei Corporation, the consensus EPS estimate for the upcoming report has changed -6% over the past month to $0.41. This represents a change of -4.7% from what the company reported a year ago. Nuvei Corporation currently has a Zacks Rank of #4 (Sell).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nuvei Corporation (NVEI) - free report >>

Nayax Ltd. (NYAX) - free report >>

Published in