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CompoSecure (CMPO) Soars 9.2%: Is Further Upside Left in the Stock?

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CompoSecure, Inc. (CMPO - Free Report) shares ended the last trading session 9.2% higher at $23.41. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.7% gain over the past four weeks.

CompoSecure retained its rally for the second straight day, which might be the result of its merger completion with Husky Technologies on Jan. 12, forming a $7.4 billion enterprise now rebranded as GPGI, Inc. The combined company boasts around 70% recurring revenues, strong margins and robust free cash flow, with the deal expected to be over 20% accretive to adjusted EPS in the first year consequent to the deal closure. Funded by $2 billion in private placement, $2 billion in debt, and a $1 billion rollover from Platinum Equity, the new entity will trade as “GPGI” starting Jan. 23, 2026.

In addition to this, CompoSecure's competitive strengths lie in its decades-long leadership and innovation in metal payment card technology and digital security. The company pioneered key advancements such as the first mass affluent metal card and NFC-enabled cold storage device, supported by a strong R&D pipeline and over 65 patents. It maintains long-standing relationships with major clients like American Express and JP Morgan Chase. Its proprietary Arculus platform enhances secure authentication and digital asset storage, positioning CompoSecure as a trusted, high-growth provider in both fintech and security sectors.

This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -40.7%. Revenues are expected to be $117.01 million, up 16% 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 CompoSecure, 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 CMPO 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 >>>>

CompoSecure is part of the Zacks Financial Transaction Services industry. Cantaloupe (CTLP - Free Report) , another stock in the same industry, closed the last trading session 0.3% higher at $10.85. CTLP has returned 1.7% in the past month.

For Cantaloupe, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.1. This represents a change of +42.9% from what the company reported a year ago. Cantaloupe currently has a Zacks Rank of #3 (Hold).


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