Image Source: Zacks Investment Research Key Takeaways The bulls appear firmly in charge as we inch closer to July, fueled by tech earnings growth and trade war progress. Even though the market dipped on Friday, investors are largely shaking off recent concerns about the escalating conflict in the Middle East. Wall Street has largely held its ground in June, content to chop around above the Nasdaq and the S&P 500's 21- day moving averages and below their all-time highs. The calm stretch came after the furiou ...

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]

MasterCard (MA) closed the most recent trading day at $562.03, moving -4.62% from the previous trading session. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.79%, while the tech-heavy Nasdaq lost 1.3%. The processor of debit and credit card payments's shares have seen an increase of 1.22% over the last month, surpassing the Business Services sector's gain of 0.81% and falling behind the S&P 500's gain of 3.55%.The investment community will be closely monitoring the performanc ...

Company Performance - Western Union closed at $9.13, reflecting a -1.3% change from the previous day, underperforming the S&P 500's gain of 0.38% [1] - Over the past month, shares have decreased by 4.15%, contrasting with the Business Services sector's gain of 3.09% and the S&P 500's gain of 6.6% [1] Earnings Estimates - The upcoming earnings report is expected to show an EPS of $0.44, indicating stability compared to the same quarter last year, with revenue anticipated at $1.03 billion, down 3.44% from the prior-year quarter [2] - For the full year, earnings are projected at $1.77 per share and revenue at $4.12 billion, reflecting changes of +1.72% and -2.11% respectively from the previous year [3] Analyst Sentiment - Recent revisions in analyst estimates are crucial as they often indicate near-term business trends, with positive changes suggesting optimism regarding business and profitability [3][4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Western Union at 3 (Hold) [5] Valuation Metrics - Western Union has a Forward P/E ratio of 5.22, significantly lower than the industry average of 15.67, indicating it is trading at a discount [6] - The company also holds a PEG ratio of 1.39, which aligns with the average PEG ratio for the Financial Transaction Services industry [7] Industry Context - The Financial Transaction Services industry is part of the Business Services sector and holds a Zacks Industry Rank of 48, placing it in the top 20% of over 250 industries [8]

Company Overview - Corpay shares have increased by approximately 0.3% since the last earnings report, underperforming the S&P 500 [1] - Recent estimates for Corpay have trended downward over the past month [2] Performance Metrics - Corpay has a subpar Growth Score of D and a similar score for momentum, with a value grade of C, placing it in the middle 20% for this investment strategy [3] - The overall aggregate VGM Score for Corpay is D, indicating a lack of strong performance across multiple investment strategies [3] Outlook - The downward trend in estimates suggests a negative shift in expectations for Corpay, which currently holds a Zacks Rank 3 (Hold) [4] - An in-line return is anticipated for Corpay in the upcoming months [4] Industry Comparison - Corpay is part of the Zacks Financial Transaction Services industry, where MasterCard has seen a gain of 3.1% over the past month [5] - MasterCard reported revenues of $7.25 billion for the last quarter, reflecting a year-over-year increase of 14.2%, with EPS rising from $3.31 to $3.73 [5] - MasterCard's expected earnings for the current quarter are $4.05 per share, indicating a year-over-year change of 12.8% [6]

Core Viewpoint - Fidelity National Information Services (FIS) has seen a 6.4% increase in share price over the past month, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Estimates Movement - Estimates for Fidelity National have trended downward over the past month, indicating a negative shift in expectations [2] VGM Scores - Fidelity National has a subpar Growth Score of D and a Momentum Score of F, while it holds a middle-tier Value Score of C, resulting in an overall VGM Score of D [3] Outlook - The downward trend in estimates suggests a cautious outlook for Fidelity National, which currently holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - Within the Financial Transaction Services industry, Paypal (PYPL) has gained 6% over the past month, reporting revenues of $7.79 billion for the last quarter, reflecting a year-over-year increase of 1.2% [5] - For the current quarter, Paypal is expected to report earnings of $1.28 per share, a 7.6% increase from the previous year, with a Zacks Consensus Estimate showing a slight upward revision of 0.2% [6]

Core Viewpoint - Global Payments (GPN) has experienced a decline of approximately 2.8% in share price over the past month, underperforming the S&P 500, raising questions about its future performance leading up to the next earnings release [1]. Group 1: Earnings and Estimates - Recent estimates for Global Payments have trended downward over the past month, indicating a negative outlook [2]. - The stock has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return in the coming months [4]. Group 2: VGM Scores - Global Payments has an average Growth Score of C and a Momentum Score of F, but it received an A for Value, placing it in the top quintile for this investment strategy [3]. - The overall aggregate VGM Score for Global Payments is B, which is relevant for investors not focused on a single strategy [3]. Group 3: Industry Performance - Global Payments is part of the Zacks Financial Transaction Services industry, where Visa (V) has seen a gain of 5.2% over the past month [5]. - Visa reported revenues of $9.59 billion for the last quarter, reflecting a year-over-year increase of 9.3%, with EPS rising from $2.51 to $2.76 [5]. - Visa's expected earnings for the current quarter are $2.84 per share, indicating a year-over-year growth of 17.4%, with a slight downward revision of -0.2% in estimates over the last 30 days [6].

Industry Overview - The Financial Transaction Services industry is part of the FinTech space, encompassing card and payment processing, ATM services, money remittance, and investment solutions for financial advisors [2] - The industry operates proprietary global payment networks that facilitate transactions in multiple currencies, benefiting from ongoing digitization accelerated by the pandemic [2] Key Trends - Digital transformation is driving the adoption of contactless payment methods, cryptocurrencies, biometric authentication, and BNPL services, enhancing market reach and revenue diversification [3] - Increased cross-border transactions are supported by rising international trade and travel, with advanced payment platforms enabling efficient currency exchange [4] - Resilient consumer spending is contributing to higher transaction volumes, although inflationary pressures may impact future spending patterns [5] - Companies are leveraging mergers and acquisitions to build comprehensive digital ecosystems, enhancing service portfolios and expanding international presence [6] Performance Metrics - The Zacks Financial Transaction Services industry has outperformed the Business Services sector and the S&P 500, growing 26.3% over the past year compared to 8.6% and 11.4% respectively [10] - The industry currently trades at a trailing 12-month Price/Earnings ratio of 27.28X, slightly above the S&P 500's 24.14X and the sector's 27.38X [13] Company Highlights - **Visa**: A leading global digital payments company, expanding through strategic alliances and acquisitions, with a focus on technology investments [15] - **Mastercard**: Maintains a strong position through collaborations and strategic investments, with a 15% year-over-year increase in cross-border volumes [20] - **Fiserv**: Offers a broad suite of solutions with a focus on recurring revenue streams and strong margins, aiming for exceptional performance through client acquisition [22] - **Fidelity National**: Achieving revenue growth from its Banking Solutions and Capital Market Solutions divisions, with a strategic presence in international markets [26] - **Global Payments**: Positioned for growth with solid performances in Merchant and Issuer Solutions, supported by strategic acquisitions and technology investments [29]