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.
Euronet (EEFT) Stock Soars 46.6% YTD: Further Upside Left?
Read MoreHide Full Article
Euronet Worldwide, Inc. (EEFT - Free Report) has been favored by investors on the back of favorable operating performance led by revenue growth and inorganic strategies.
The company recently delivered third-quarter 2019 earnings of $2.84 per share, up 31.5% year over year. This upside can mainly be attributed to higher segmental revenue contributions. Euronet’s total revenues of $787 million were also up 10.1% from the year-ago quarter.
This Zacks Rank #3 (Hold) company’s shares have surged 46.6% year to date, outperforming its industry's growth of 19.5%. Strong segmental performances and accretive acquisitions should continue to drive the stock.
Its return on equity — a profitability measure — came in at 28.1%, higher than the industry's average of 22.3%.
We expect this momentum to continue, banking on the following factors:
This provider of payment and transaction processing and distribution solutions has been witnessing impressive top-line growth, evident from its 2013-2018 CAGR of 12.4%. This uptrend was owing to solid segmental results and diversity across products and geographies. With more products and services as well as new and exciting geographic options at its disposal, Euronet is well-positioned to maintain strong growth rates going forward.
The company’s growth strategy worked to its advantage. Certain strategic initiatives helped it expand its network and ATMs. Its Ria Money Transfer segment is well-poised for progress, riding high on alliances. Tie-ups with biggies like Amazon and Walmart also bode well.
Euronet’s EFT segment witnessed consecutive years of double-digit growth, backed by its steady focus on deploying more devices across extended markets and its ability to develop an advanced technology for new products at both ATMs and POS terminals for optimizing and enriching the customer experience.
Money Transfer Segment is consistently generating growth in the physical and digital distribution channels. Certain acquisitions like HiFX And IME made by this segment should lead to long-term development.
Other Noteworthy Factors
The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
The company’s long-term growth rate of 10% is a positive as it lies above the industry average of 9.4%.
Also, the company delivered a positive earnings surprise in all the last four quarters, the average being 2.9%.
The Zacks Consensus Estimate for the company’s 2019 and 2020 earnings indicates an improvement of 26.4% and 14.7%, respectively, from the year-ago reported figures.
On Deck Capital operates an online platform for small business lending. It pulled off average four-quarter positive surprise of 8.3%.
AXA Equitable Holdings works as a diversified financial services company. The company came up with average four-quarter beat of 12.4%.
Cardtronics provides automated consumer financial services and delivered average four-quarter positive surprise of 28.8%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Euronet (EEFT) Stock Soars 46.6% YTD: Further Upside Left?
Euronet Worldwide, Inc. (EEFT - Free Report) has been favored by investors on the back of favorable operating performance led by revenue growth and inorganic strategies.
The company recently delivered third-quarter 2019 earnings of $2.84 per share, up 31.5% year over year. This upside can mainly be attributed to higher segmental revenue contributions. Euronet’s total revenues of $787 million were also up 10.1% from the year-ago quarter.
This Zacks Rank #3 (Hold) company’s shares have surged 46.6% year to date, outperforming its industry's growth of 19.5%. Strong segmental performances and accretive acquisitions should continue to drive the stock.
Its return on equity — a profitability measure — came in at 28.1%, higher than the industry's average of 22.3%.
We expect this momentum to continue, banking on the following factors:
This provider of payment and transaction processing and distribution solutions has been witnessing impressive top-line growth, evident from its 2013-2018 CAGR of 12.4%. This uptrend was owing to solid segmental results and diversity across products and geographies. With more products and services as well as new and exciting geographic options at its disposal, Euronet is well-positioned to maintain strong growth rates going forward.
The company’s growth strategy worked to its advantage. Certain strategic initiatives helped it expand its network and ATMs. Its Ria Money Transfer segment is well-poised for progress, riding high on alliances. Tie-ups with biggies like Amazon and Walmart also bode well.
Euronet’s EFT segment witnessed consecutive years of double-digit growth, backed by its steady focus on deploying more devices across extended markets and its ability to develop an advanced technology for new products at both ATMs and POS terminals for optimizing and enriching the customer experience.
Money Transfer Segment is consistently generating growth in the physical and digital distribution channels. Certain acquisitions like HiFX And IME made by this segment should lead to long-term development.
Other Noteworthy Factors
The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
The company’s long-term growth rate of 10% is a positive as it lies above the industry average of 9.4%.
Also, the company delivered a positive earnings surprise in all the last four quarters, the average being 2.9%.
The Zacks Consensus Estimate for the company’s 2019 and 2020 earnings indicates an improvement of 26.4% and 14.7%, respectively, from the year-ago reported figures.
Stocks to Consider
Investors interested in the finance sector may consider some better-ranked stocks like On Deck Capital, Inc. , AXA Equitable Holdings, Inc. (EQH - Free Report) and Cardtronics PLC , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Deck Capital operates an online platform for small business lending. It pulled off average four-quarter positive surprise of 8.3%.
AXA Equitable Holdings works as a diversified financial services company. The company came up with average four-quarter beat of 12.4%.
Cardtronics provides automated consumer financial services and delivered average four-quarter positive surprise of 28.8%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>