TFC & CPAY Bull Case & Options Trades: What Markets Missed in Financial Space

Company: Truest Financial - The stock has recently broken out to a new 52-week high, driven by the outperformance of financials amid expectations of lower interest rates [2][3] - Truest Financial is trading at tangible book value, making it more attractive compared to other regional banks that are trading 20-25% higher in valuations [3] - Expected EPS growth is around 12-13% year-over-year, with revenue growth projected at 17-18% year-over-year [4] - The bank has relatively light exposure to commercial real estate, which is a positive factor compared to other regional banks [5] - The capital structure allows for aggressive share buybacks, contributing to the stock's recent outperformance [5] Trading Strategy for Truest Financial - A suggested trading strategy involves buying a call option with a strike price of $47.5, which is nearly in the money [6][7] - The option provides downside protection while allowing for unlimited upside exposure if the breakout continues [7][8] Company: Core Pay - Core Pay, previously known as Fleet Core, has transitioned from a gas card company to a corporate payments company, now one of the largest non-bank FX payments firms [9][10] - Corporate payments now account for nearly 35% of revenue, growing at 20% year-over-year, while the gas card business remains a significant revenue driver [10] - The company is experiencing EPS and revenue growth in the 15-20% range, with net profit margins at 25% [11] - The market still perceives Core Pay primarily as a gas card company, leading to a lower valuation at around 12 times next year's earnings [11] - Recent stock performance shows a breakout above the $300 resistance level, with a short-term target of $350, indicating potential for further upside [14][15]