Driven by a strong momentum, shares of
Euronet Worldwide Inc.
) hit an all-time new 52-week high of $50.05 on Jul 1. Notably,
this leading electronic payment provider's shares have risen 12.4%
since the company reported first-quarter results at the end of
Euronet Worldwide also witnessed an earnings streak in all the
past 4 quarters, with an average beat of 11.2%. The momentum of
this Zacks Rank #1 (Strong Buy) stock has been driven by the
company's active organic growth initiatives that are expected to
improve outlook going forward.
Yesterday's closing price represented a robust one-year return
of about 55.6% against a return of 31.0% clocked by the Nasdaq
index. Average volume of shares traded over the last three months
stands at approximately 312.1K.
On Apr 29, Euronet Worldwide reported first-quarter 2014
earnings per share (EPS) of 46 cents, higher than the Zacks
Consensus Estimate of 41 cents and the year-ago quarter figure of
Higher transactions as well as double-digit revenue growth in
EFT processing and money transfer segments drove the top line,
margins and operating cash flow. These were partly offset by a rise
in expenses and debt.
Euronet Worlwide is benefiting from the recent launch of digital
products, the Walmart alliance and sustained sales of higher-margin
products. The acquisition of the UK-based HiFX in May 2014 will
further expand the company's international money transfer offerings
to high-income individuals and small-to-medium sized businesses. It
also fits in with Euronet Worlwide's existing Ria operations.
Such core growth improvement, adequate liquidity and
competitiveness against larger players are impressive. These
positivesinstill confidence in investors about the company's growth
prospects. Management also remains optimistic, as reflected in its
EPS projection of 57 cents in second-quarter 2014.
Meanwhile, one could also consider financial stocks like
Ladder Capital Corp.
Global Cash Access Holdings Inc.
VeriFone Systems Inc.
), all of which sport the same Zacks Rank as Euronet Worlwide.
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EURONET WORLDWD (EEFT): Free Stock Analysis
LADDER CAP CP-A (LADR): Free Stock Analysis
VERIFONE SYSTMS (PAY): Free Stock Analysis
GLOBAL CASH ACS (GCA): Free Stock Analysis
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