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Buy 5 Financial Transaction Stocks to Enhance Your Portfolio Returns
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Key Takeaways
CPAY is growing through payment volume, revenue per transaction and acquisitions expanding its customer base.
V is seeing momentum from payment volumes, AI-driven services, and fiscal 2026 low-teens revenue guidance.
JPM plans $19.8B in 2026 tech spending as digital expansion and diversified businesses support growth.
Financial technology (fintech) represents a transformative investment space in a hybrid sector merging finance and technology. The companies featured on the screen encompass a variety of services, such as online banking, peer-to-peer payments, insurance, cryptocurrency and cybersecurity.
Fintech's innovative nature positions it as a fascinating choice in the evolving financial landscape. With the expansion of mobile and broadband networks, fintech is poised for significant growth. The rise of artificial intelligence (AI) technologies and machine learning further revolutionizes banking, payments and investments, offering efficient and secure financial solutions.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Corpay Inc.
Zacks Rank #2 Corpay is a global commercial payments solution provider. Through its portfolio of brands, CPAY helps companies automate, secure, digitize and control payments to, or on behalf of, their employees and suppliers. CPAY serves businesses, partners and merchants in North America, Latin America, Europe and the Asia Pacific.
CPAY’s top line continues to grow organically, driven by increased volume and revenue per transaction from certain payment programs. CPAY relies on a multi-channel approach to actively market and sell its solutions to current and prospective customers. Acquisitions are CPAY’s way to boost its customer base.
Corpay has an expected revenue and earnings growth rate of 17.3% and 25.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% over the last 60 days.
Jack Henry & Associates Inc.
Zacks Rank #2 Jack Henry & Associates is benefiting from rising services, support and processing revenues as clients migrate to private and public cloud. Cloud revenues are now about a third of total revenues, and recurring revenues remain the core mix. Growing digital, card and faster payment processing continues to lift transaction-based revenues.
Core win momentum and a higher mix of integrated trifecta deals are deepening JKHY’s client relationships and expanding wallet share. Management is expanding internal AI tools to support productivity and service.
Solid demand for the company’s AI-powered fraud detection platform is acting as a tailwind. JKHY’s growing initiatives to incorporate AI into select client solutions are expected to boost its revenues in the near term.
Jack Henry & Associates has an expected revenue and earnings growth rate of 5.9% and 4.1%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% in the last 90 days.
Visa Inc.
Zacks Rank #2 Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
V’s fiscal second-quarter results showed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. Management guides to low-teens revenue growth for fiscal 2026.
Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. Visa has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has an expected revenue and earnings growth rate of 13.4% and 14.2%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% over the last 30 days.
Virtu Financial Inc.
Zacks Rank #1 Virtu Financial is benefiting from an active trading backdrop that continues to support opportunity capture across equities, options, and other asset classes. VIRT is scaling its capital base and reinforcing returns by investing in technology and talent, which has supported higher daily adjusted net trading income through the cycle.
VIRT’s Execution Services is gaining relevance, extending diversification with expanding product penetration across workflow technology, algorithms, and capital markets activity. Balance sheet liquidity and disciplined leverage help fund reinvestment while supporting dividends and buybacks. VIRT continues to pay a quarterly dividend of 24 cents per share.
Virtu Financial has an expected revenue and earnings growth rate of 10.6% and 13.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.2% over the last 60 days.
JPMorgan Chase & Co.
Zacks Rank #2 JPMorgan Chase’s consumer franchise keeps widening. The company, with is opening new branches in the United States and plans the Chase digital expansion in Europe following successful launches in the U.K. and Germany. JPM’s scale and diversified business mix continue to support earnings, with ongoing balance sheet growth and higher rates for a longer time to drive net interest income (NII) expansion.
JPM’s markets revenues and investment banking fees are likely to remain strong, and healthy asset management activity should continue to drive fee income. A strong liquidity profile supports enhanced dividends and buybacks, with room for selective dealmaking. JPM plans to allocate $19.8 billion toward tech initiatives in 2026. JPM’s efficient capital distributions reflect a solid capital position.
JPMorgan Chase has an expected revenue and earnings growth rate of 7.9% and 11.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% in the last seven days.
View the Zacks #1 Rank List
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Buy 5 Financial Transaction Stocks to Enhance Your Portfolio Returns
Key Takeaways
Financial technology (fintech) represents a transformative investment space in a hybrid sector merging finance and technology. The companies featured on the screen encompass a variety of services, such as online banking, peer-to-peer payments, insurance, cryptocurrency and cybersecurity.
Fintech's innovative nature positions it as a fascinating choice in the evolving financial landscape. With the expansion of mobile and broadband networks, fintech is poised for significant growth. The rise of artificial intelligence (AI) technologies and machine learning further revolutionizes banking, payments and investments, offering efficient and secure financial solutions.
At this stage, we recommend investing in five financial technology bigwigs to tap the digital finance revolution. These are: Corpay Inc. (CPAY - Free Report) , Jack Henry & Associates Inc. (JKHY - Free Report) , Visa Inc. (V - Free Report) , Virtu Financial Inc. (VIRT - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Corpay Inc.
Zacks Rank #2 Corpay is a global commercial payments solution provider. Through its portfolio of brands, CPAY helps companies automate, secure, digitize and control payments to, or on behalf of, their employees and suppliers. CPAY serves businesses, partners and merchants in North America, Latin America, Europe and the Asia Pacific.
CPAY’s top line continues to grow organically, driven by increased volume and revenue per transaction from certain payment programs. CPAY relies on a multi-channel approach to actively market and sell its solutions to current and prospective customers. Acquisitions are CPAY’s way to boost its customer base.
Corpay has an expected revenue and earnings growth rate of 17.3% and 25.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% over the last 60 days.
Jack Henry & Associates Inc.
Zacks Rank #2 Jack Henry & Associates is benefiting from rising services, support and processing revenues as clients migrate to private and public cloud. Cloud revenues are now about a third of total revenues, and recurring revenues remain the core mix. Growing digital, card and faster payment processing continues to lift transaction-based revenues.
Core win momentum and a higher mix of integrated trifecta deals are deepening JKHY’s client relationships and expanding wallet share. Management is expanding internal AI tools to support productivity and service.
Solid demand for the company’s AI-powered fraud detection platform is acting as a tailwind. JKHY’s growing initiatives to incorporate AI into select client solutions are expected to boost its revenues in the near term.
Jack Henry & Associates has an expected revenue and earnings growth rate of 5.9% and 4.1%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% in the last 90 days.
Visa Inc.
Zacks Rank #2 Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
V’s fiscal second-quarter results showed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. Management guides to low-teens revenue growth for fiscal 2026.
Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. Visa has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has an expected revenue and earnings growth rate of 13.4% and 14.2%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% over the last 30 days.
Virtu Financial Inc.
Zacks Rank #1 Virtu Financial is benefiting from an active trading backdrop that continues to support opportunity capture across equities, options, and other asset classes. VIRT is scaling its capital base and reinforcing returns by investing in technology and talent, which has supported higher daily adjusted net trading income through the cycle.
VIRT’s Execution Services is gaining relevance, extending diversification with expanding product penetration across workflow technology, algorithms, and capital markets activity. Balance sheet liquidity and disciplined leverage help fund reinvestment while supporting dividends and buybacks. VIRT continues to pay a quarterly dividend of 24 cents per share.
Virtu Financial has an expected revenue and earnings growth rate of 10.6% and 13.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.2% over the last 60 days.
JPMorgan Chase & Co.
Zacks Rank #2 JPMorgan Chase’s consumer franchise keeps widening. The company, with is opening new branches in the United States and plans the Chase digital expansion in Europe following successful launches in the U.K. and Germany. JPM’s scale and diversified business mix continue to support earnings, with ongoing balance sheet growth and higher rates for a longer time to drive net interest income (NII) expansion.
JPM’s markets revenues and investment banking fees are likely to remain strong, and healthy asset management activity should continue to drive fee income. A strong liquidity profile supports enhanced dividends and buybacks, with room for selective dealmaking. JPM plans to allocate $19.8 billion toward tech initiatives in 2026. JPM’s efficient capital distributions reflect a solid capital position.
JPMorgan Chase has an expected revenue and earnings growth rate of 7.9% and 11.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% in the last seven days.