Euronet (EEFT) up 11.4% over the past month: new growth coming?

Euronet Worldwide, Inc.EEFT shares jumped 11.4% in the past month against the industry’s 1.2% decline, thanks to greater exposure, a faster economic recovery and strong results from the electronic transfer business funds and money transfer. The company not only managed to weather the coronavirus-induced market volatility of the past year, but has also positioned itself for better returns going forward.

– Zack

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Based in Leawood, KS, Euronet is a leading provider of electronic payments. The company provides payment and transaction processing and distribution solutions to financial institutions, retailers, consumers and service providers. It has a market capitalization of $ 6.3 billion.

Can he keep his momentum?

The answer is yes and before we get into the specifics, let us show you how his 2021 estimate looks. Zacks’ consensus estimate for 2021 earnings per share is currently $ 3.86. reporting a 36.9% increase year over year. EEFT has beaten earnings estimates in two of the past four quarters and failed twice, with an average surprise of 2.6%. Zacks’ consensus estimate for 2021 revenue is set at $ 3 billion, indicating a 20.5% year-over-year increase.

Now let’s take a look at what drives Zacks Rank # 3 (Hold) stock.

The company’s digital transactions have performed well over the past few months. It has taken some initiatives such as expanding its digital media content in Australia which includes Uber, Netflix and Spotify. The company has taken various steps to strengthen its geographic reach of its digital presence through the EEFT mobile app and real-money transfer.com. This year, it launched the app in Lithuania and partnered with Bret Bank in France to pay pensions for French expatriates. He also unveiled content distribution with Fame Height, a white label platform for game influencers, through digital channels in 14 countries.

Euronet’s revenue improvement has been impressive, with a CAGR of 11.6% in the 2015-2019 period thanks to strong segment results and its diversity across products and geographies. Although in 2020 EEFT’s revenue fell 9.7% due to lower transactions following the COVID-19 pandemic, it also rebounded 23% year-on-year in the first nine months 2021. We hope that the company’s turnover will continue to provide strong figures. on the basis of strong sector results, a large number of product and service launches as well as exciting new geographic options.

The strong inorganic growth strategy is also impressive. Several initiatives such as ATM network participation agreements and the launch of card issuance products are preparing the company for its growth. Euronet has signed an agreement with Vietcom Bank, one of Vietnam’s largest commercial banks, to offer DCC pass-through services. The company has also agreed to purchase the merchant acquisition activities of Piraeus Bank in Greece. Euronet also signed an agreement with the Bank of the Philippine Islands, OTP Bank in Romania, BPI, to take over 300 of their existing ATMs. All of these initiatives prepare the company well for future expansion.

Risks

Despite the upside potential, there are a few factors that are hampering the stock’s growth lately. Rising expenses weigh on EEFT’s margins. This could intensify as the company constantly invests in technology and other expansion initiatives. In the last nine months of 2021, total operating costs have increased by 14%. In addition, its high leverage can affect financial flexibility. Nonetheless, we believe that a systematic and strategic plan of action will drive long-term growth.

Key choices in finance

Some higher ranked players in the finance space include Alérus Financial Corporation ALRS, MoneyGram International, Inc. MGI and Houlihan Lokey, Inc. HLI. While Alerus Financial and MoneyGram have a Zacks # 1 (strong buy) ranking, Houlihan Lokey has a Zacks # 2 (buy) ranking. You can see The full list of today’s Zacks # 1 Rank stocks here.

Based in Grand Forks, North Dakota, Alerus Financial provides a variety of financial services to its clients. Its financial strength is reflected in massive total assets of $ 3.2 billion at the end of the third quarter, which rose 5.4% for the first nine months of 2021. The rise in investment securities will likely continue to strengthen ALRS’s asset position over the coming quarters.

Alerus Financial’s net income for 2021 is expected to increase 11.1% year-over-year to $ 2.80 per share. It has seen two upward revisions to estimates in the past 60 days and no movement in the opposite direction. Alerus Financial has beaten earnings estimates three times in the past four quarters and missed once, with an average surprise of 23.6%.

Based in Dallas, Texas, MoneyGram’s new business line named MoneyGram as a Service represents a significant growth opportunity in a market estimated at $ 17 billion in 2024. Through this service, the company seeks to monetize its infrastructure based on APIs, which allows instant access to 125 different currencies through its global treasury network.

MoneyGram’s earnings estimates for 2021 have risen 140% to 24 cents a share in the past 60 days. It has seen two upward revisions to estimates in the past 60 days, compared to none in the opposite direction. MGI has beaten earnings estimates twice in two of the past four quarters, met once and missed the other.

Houlihan Lokey, headquartered in Los Angeles, California, provides multiple financial services to clients around the world. Its growing footprint in investment banking services in Europe and Asia will help HLI increase strategic and shareholder value in the coming days. The increase in average transaction fees will help HLI increase revenue from corporate finance.

Houlihan Lokey’s net income for the year 2022 is expected to increase 37.7% year-on-year to $ 6.36 per share. In the past 60 days, it has seen three upward revisions in estimates and no downward movement. HLI has beaten earnings estimates over the past four quarters, averaging 39.5%.

5 actions in the process of doubling

Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.

Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.

Today, discover these 5 potential circuits >>

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MoneyGram International Inc. (MGI): Free Stock Analysis Report

Euronet Worldwide, Inc. (EEFT): Free Stock Analysis Report

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