Markets

Stock of the Week: Total System Services (TSS)

Total System Services (TSS) has a Very Bullish Chaikin Power Gauge rating and recently triggered a Relative Strength buy signal in Chaikin Analytics. TSS provides global digital commerce and payment solutions for banks and merchants alike. It recently signed alliances with Premier Bank in Bangladesh and ING Bank NV. They have announced a partnership with Google to use Android Pay for secure mobile payments.

Total System Services has reported 14 quarters of double-digit revenue growth and has beaten analyst estimates in each of the last four quarters. Its next earnings report is expected on 10/28/15. Its recent acquisition of NetSpend added significantly to top line revenues in the 2nd quarter.

Analysts are estimating earnings per share of $2.30 for 2015, a 25% increase over 2014. Both Barclays and RBC Capital have issued positive comments about TSS in recent weeks. This company is not widely followed on Wall Street and thus positive earnings surprises tend to see the stock move up nicely in the weeks following earnings reports.

Buy TSS on market weakness down to the 44-46 area. It is interesting to note that in the August panic TSS held above its June lows and rallied nicely. This is a pattern you should look for as a tip off to future market leaders when the bottom has been made.

Total Systems Services has a bullish Chaikin Power Gauge rating that is driven by a bullish earnings outlook, very strong price and volume activity, bullish Analyst Opinions and upward earnings revisions and the strength of the Business Service group.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.