4 Payment Stocks To Gain From Strong Online Sales Growth
Zacks Investment Research | Dec 26, 2019 08:47PM ET
Companies involved in the online payment processing ecosystem look poised for gains from the most-recent holiday retail sales, which saw an online surge. Low unemployment levels, increase in wages and solid consumer confidence have spurred holiday sales this time.
Per a report by Mastercard, one of the leading payment processor companies having a worldwide payment network, e-commerce in the United States hit a record high this year.
Often online payments are made via debit or credit cards, from bank accounts or through contactless methods. The proliferation of technology has led to an increase in e-commerce in recent years, which in turn have boost digital payments. This growing trend of online shopping places the companies in this space for strong growth and thus investing in them seems a good option.
Year to date, the payments
Mastercard Incorporated (NYSE:MA) is riding on higher switched transactions, increase in cross-border volume and gross dollar volume. Numerous acquisitions made over the past many years have fueled its growth. The company's solid market foothold, ongoing expansion, investment in technology and opportunities from the shift to electronic payments paved the path for long-term growth. Its solid capital position boosts investment in business.
The stock carries a Zacks Rank #2 and has jumped 58.6% year to date compared with its industry’s growth of 44.9%. The company has witnessed its 2020 Zacks Consensus Estimate for earnings moving upward by 1.1% over the last 60 days. For 2020, the company’s earnings are expected to grow 17.7% compared with the industry’s expected earnings growth of 15.7%.
PaySign Inc. (NASDAQ:PAYS) is a provider of prepaid card programs and processing services for corporate, consumer and government applications through its Paysign brand.
The stock has a Zacks Rank #2 and has skyrocketed 191.7% year to date. The company witnessed its 2020 Zacks Consensus Estimate for earnings increasing 12.5% over the last 60 days. For the upcoming year, earnings are expected to shoot up 85.2% compared with the industry’s expected earnings growth of 15.7%.
Visa Inc. (NYSE:V) carries a Zacks Rank #3 (Hold). Numerous acquisitions and alliances, plus technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues. The acquisition of Visa Europe is a long-term growth strategy. Its strong capital position is another positive.
The stock has gained 43.4% year to date. For 2020, the company’s expected earnings growth is 14.2% compared with 9.2% earnings growth forecast for its industry.
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