Core Insights - PayPal (PYPL) shares have declined 13.7% year to date, primarily due to increased competition in the fintech sector from companies like Visa, Mastercard, Apple Pay, and Adyen [1][2] - Despite PayPal's struggles, Visa and Mastercard have seen share increases of 10.3% and 4.5% respectively, indicating PayPal's relative underperformance [2][7] - PayPal is transitioning from a payments provider to a comprehensive commerce partner, focusing on personalized experiences and a unified platform for consumers and merchants [3][18] Financial Performance - In Q1 2025, PayPal's transaction margin dollars increased by 7% year over year to $3.72 billion, driven by strong performance in omnichannel commerce and Venmo, with Venmo revenues rising by 20% [4][10] - The Buy Now Pay Later (BNPL) segment saw over 20% volume growth in Q1, with monthly active accounts up 18% year over year, indicating strong consumer engagement [5][7] - PayPal's forward 12-month P/E ratio is 13.74X, significantly lower than the industry average of 22.48X, suggesting the stock is undervalued compared to peers like Visa and Mastercard [11][13] Strategic Initiatives - PayPal is expanding its omnichannel strategy internationally, with plans to roll out NFC functionality in Germany and the UK [4][10] - The company is enhancing its partnerships with firms like Coinbase, Fiserv, and Shopify to bolster its growth outlook and expand the adoption of its PayPal USD stablecoin [9][18] - Investments in product modernization and geographic expansion are expected to impact margin improvement in the near term, but are essential for long-term growth [10][18] Earnings Estimates - The Zacks Consensus Estimate for PayPal's 2025 earnings is $5.08 per share, reflecting a 9.25% growth over 2024, with Q2 2025 earnings estimated at $1.30 per share, indicating a 9.2% increase year over year [14][15] - Recent estimate revisions show a positive trend for the second quarter and full years 2025 and 2026, although the outlook for Q3 is less favorable [14][19]

In the latest trading session, PagSeguro Digital Ltd. (PAGS) closed at $9.37, marking a -2.8% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.8%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%. The stock of company has risen by 11.06% in the past month, leading the Business Services sector's loss of 0.89% and the S&P 500's gain of 5.12%.Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. ...

Core Insights - The article compares two financial transaction services companies, PagSeguro Digital Ltd. (PAGS) and DLocal (DLO), to determine which is the better undervalued stock option for investors [1] Valuation Metrics - PAGS has a forward P/E ratio of 7.65, significantly lower than DLO's forward P/E of 17.66, indicating that PAGS may be undervalued [5] - The PEG ratio for PAGS is 0.68, while DLO's PEG ratio is 1.05, suggesting that PAGS has a better growth outlook relative to its price [5] - PAGS has a P/B ratio of 1.25 compared to DLO's P/B of 5.75, further indicating that PAGS is more attractively valued based on its book value [6] Investment Ratings - PAGS currently holds a Zacks Rank of 2 (Buy), while DLO has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for PAGS [3] - Based on the valuation metrics and earnings outlook, PAGS is rated with a Value grade of A, whereas DLO has a Value grade of C, reinforcing PAGS as the superior value option [6]

Company Performance - FirstCash Holdings (FCFS) shares have increased by 6.2% over the past month, reaching a new 52-week high of $135.64 [1] - Year-to-date, FirstCash has gained 29.8%, outperforming the Zacks Business Services sector's 0.9% and the Zacks Financial Transaction Services industry's 2.6% [1] Earnings and Revenue - FirstCash has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters [2] - In the latest earnings report on April 24, 2025, FirstCash reported EPS of $2.07, exceeding the consensus estimate of $1.75, but missed the revenue estimate by 0.64% [2] - For the current fiscal year, FirstCash is expected to post earnings of $7.86 per share on revenues of $3.38 billion, reflecting a 17.31% change in EPS and a -0.2% change in revenues [3] - For the next fiscal year, earnings are projected to be $9.31 per share on revenues of $3.56 billion, indicating a year-over-year change of 18.35% in EPS and 5.18% in revenues [3] Valuation Metrics - FirstCash has a Value Score of B, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of A [6] - The stock currently trades at 17.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.1X [6] - On a trailing cash flow basis, FirstCash trades at 7.5X compared to its peer group's average of 11.7X [6] Zacks Rank - FirstCash holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend [7] - The company meets the criteria for investors looking for stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further gains [7] Industry Comparison - The Financial Transaction Services industry is in the top 22% of all industries, indicating favorable conditions for both FCFS and its peers [10] - Green Dot Corporation (GDOT), a peer in the industry, has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, beating consensus estimates by 51.43% [8][9]

Company Overview - DLocal shares increased by 8.8% to $11.16, following a significant trading volume, contrasting with an 8.9% decline over the past four weeks [1] - The company has experienced a rally for three consecutive days, attributed to its unified platform that facilitates payments for global merchants in over 40 emerging markets [2] Business Model and Market Position - DLocal's strong local presence, including regulatory licenses and partnerships with payment providers, enables seamless compliance and settlement in local currencies [2] - The company benefits from partnerships with top global merchants, leading to high transaction volumes and a strong Net Revenue Retention rate through upselling and cross-border expansion [3] - DLocal's asset-light model and operational efficiency contribute to high margins and profitability, while proprietary technology and market knowledge create barriers to entry for competitors [3] Financial Performance and Expectations - The upcoming quarterly earnings report is expected to show earnings of $0.15 per share, unchanged from the previous year, with revenues projected at $231.04 million, reflecting a 34.9% increase year-over-year [4] - The consensus EPS estimate has been revised 1.2% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5] Industry Context - DLocal is categorized within the Zacks Financial Transaction Services industry, which includes other companies like Nayax, that also experienced a stock increase of 5.5% recently [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, Global Blue Group and PagSeguro Digital, as strong value picks based on their financial metrics and Zacks Rank [2][8]. Group 1: Global Blue Group (GB) - Global Blue Group has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential as a value stock [4]. - The stock is currently trading with a P/E ratio of 17.33, significantly lower than its industry's average P/E of 22.16 [4]. - GB's P/CF ratio stands at 10.66, which is attractive compared to the industry's average P/CF of 17.51, suggesting it may be undervalued [5]. Group 2: PagSeguro Digital (PAGS) - PagSeguro Digital also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another appealing value investment [6]. - The company has a Forward P/E ratio of 6.86 and a PEG ratio of 0.61, both of which are favorable compared to the industry's average P/E of 22.16 and PEG ratio of 1.63 [6]. - PAGS's price-to-earnings ratio has fluctuated between 4.84 and 9.72 over the past year, with a median of 6.55, indicating potential undervaluation [7].

Market Overview - The market remains resilient in June, maintaining positions above the Nasdaq and S&P 500's 21-day moving averages, despite a recent dip [2] - Investors are encouraged to stay engaged with the stock market and continue purchasing strong stocks even amid bearish sentiment [2] Company Insights: Priority Technology Holdings, Inc. (PRTH) - PRTH is a financial technology company focused on payments and banking, serving 1.3 million active customers and handling approximately $135 billion in annual transaction volume [4] - The company is projected to grow its revenue by 11% in 2025 and 2026, reaching $1.09 billion, nearly doubling its 2021 total [8] - PRTH's adjusted earnings are expected to increase by 108% in FY25, from $0.51 to $1.06 per share, with a further 33% growth anticipated in 2026 [9] - The stock has increased by 70% over the past 12 months and is currently trading at approximately $7.80, which is 60% below its average Zacks price target [10] Company Insights: OppFi (OPFI) - OppFi partners with community banks to provide financial products to underserved middle-income Americans, utilizing a tech-enabled digital finance platform [11] - The company is projected to grow its earnings by 30% this year and 14% next year, reaching $1.41 per share in 2026 [15] - OppFi's revenue is expected to expand by 10% and 7% in the next two years, reaching $618.1 million [15] - The stock has surged 300% over the past three years, significantly outperforming its industry, and is currently trading at around $13, which is 45% below its highs [18][19]

Group 1: Company Overview - BGSF is part of the Business Services group, which consists of 271 companies and ranks 3 in the Zacks Sector Rank [2] - BGSF currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - Year-to-date, BGSF has returned 5%, significantly outperforming the Business Services sector's average return of 0.3% [4] - In comparison, FirstCash Holdings (FCFS) has seen a year-to-date increase of 24% [4] - BGSF's full-year earnings consensus estimate has risen by 366.7% over the past three months, reflecting improved analyst sentiment [3] Group 3: Industry Context - BGSF belongs to the Business - Services industry, which includes 26 companies and currently ranks 70 in the Zacks Industry Rank; this industry has gained an average of 16.3% year-to-date, indicating BGSF is slightly underperforming its industry [5] - FirstCash Holdings operates within the Financial Transaction Services industry, which has 35 stocks and ranks 57, with a year-to-date increase of 0.4% [6]

Group 1: Stock Performance - Visa closed at $340.38, reflecting a -4.88% change from the previous day, which is less than the S&P 500's daily loss of 0.03% [1] - Over the past month, Visa shares have decreased by 2.45%, underperforming the Business Services sector's loss of 1.86% and the S&P 500's gain of 0.6% [1] Group 2: Earnings Forecast - Visa is expected to report an EPS of $2.84, indicating a 17.36% increase from the same quarter last year [2] - The consensus estimate for revenue is projected at $9.84 billion, representing a 10.6% rise from the equivalent quarter last year [2] Group 3: Full-Year Estimates - Full-year Zacks Consensus Estimates predict earnings of $11.35 per share and revenue of $39.6 billion, reflecting year-over-year changes of +12.94% and +10.22%, respectively [3] - Recent modifications to analyst estimates for Visa can indicate short-term business trends, with positive revisions seen as a favorable sign for the business outlook [3] Group 4: Valuation Metrics - Visa has a Forward P/E ratio of 31.53, which is a premium compared to the industry average Forward P/E of 15.33 [5] - The PEG ratio for Visa is currently 2.41, compared to the industry average PEG ratio of 1.26 [6] Group 5: Industry Ranking - The Financial Transaction Services industry, part of the Business Services sector, has a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries [6] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Overview - Nayax (NYAX) shares increased by 6.5% to close at $45.55, supported by high trading volume, compared to a 3.5% gain over the past four weeks [1] - The company is benefiting from a large and expanding market driven by the transition from cash to digital payments [1] Earnings Expectations - Nayax is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of 225% [2] - Revenue projections stand at $97.8 million, which is a 25.2% increase from the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Nayax has remained unchanged over the last 30 days, indicating that stock price movements may not continue without earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [4] Industry Context - Nayax operates within the Financial Transaction Services industry, which includes other players like Visa (V) [4] - Visa's consensus EPS estimate has changed by -0.3% to $2.84, representing a 17.4% increase year-over-year, and it also holds a Zacks Rank of 3 (Hold) [5]