With a rise in jobs, more people have climbed back into the
labor force raft with enthusiasm. It is time to promote positive
news about the financial transactions services industry.
Forthcoming earnings reports, or at least better revenue guidance
about a faster transaction flow across summer and fall, could
inspire quite a few well-deserved nods of accomplishment.
The Financial Transactions Services sector in the Zacks Industry
Rank list gained 109 positions last week. This large category of 18
companies now holds a rank of #38 out of 265 industries.
Positive earnings revisions outpaced negative revisions by 11 to
6. Financial Transaction Services quarterly reports as an
industry group also averaged positive Earnings per Share (EPS)
surprises of +16%.
There are a number of broad factors affecting this turnaround: the
end of a bad winter, more job security, increased consumer spending
online, fewer defaults, increased scope and ability in service
lines -- and the simple fact people are just buying more this year
compared to last. Combined, this means good news for an
industry which can leverage a direct link to topline growth in the
U.S. and global economy.
Pay attention to overall sector performance. Any swift
industry current affects not only individual businesses but the
industry as a whole. The wider and faster goes the transactions
river, the more beneficial it is to any successful investment
strategy. This industry seems to have the right discretionary
consumer focus, a sweet spot inside any transactions-driven revenue
Rising flows of stock market-driven economic expansion in
wealthy countries can give investors a first-class ferry ride to
soaring profits. Just beware the logjams of a stock market
correction, which might tamp down retail spending across the board
and lead the card transactions river to find a lower level.
Two companies stood out this week. They can swiftly turn card
transactions trends to revenue. Upgrades to a Zacks Rank #1
(Strong Buy) rating, or to a Zacks Rank #2 (Buy) rating, typically
foreshadow a positive performance for the related stocks, as a
response to even further positive earnings estimate revisions.
Global Payments, Inc. (
GPN was upgraded to a Zacks Rank #2 (Buy) last week from a #3
(Neutral). It reported earnings on April 3, 2014.
Global Payments Inc. is a leading provider of electronic
transaction processing services for consumers, merchants,
Independent Sales Organizations, financial institutions, government
agencies and multi-national corporations located throughout the
U.S., Canada, Latin America and Europe.
Global Payments offers a comprehensive line of processing solutions
for credit and debit cards, business-to-business purchasing cards,
gift cards, electronic check conversion and check guarantee,
verification and recovery, as well as terminal management. The
company also provides consumer money transfer services from the
U.S. and Europe to destinations in Latin America, Morocco and the
FISV was upgraded to a Zacks Rank #2 (Buy) last week from a #3
(Neutral). This company reports quarterly earnings on April 29,
Fiserv's strong foothold in the financial and payment solutions
business is supported by its broad customer base, a diversified
product portfolio and continuous IT upgrades. After a dismal
quarterly report in February, this trifecta can be expected to
boost the company's coming guidance in April.
FISERV INC (FISV): Free Stock Analysis Report
GLOBAL PAYMENTS (GPN): Free Stock Analysis
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