Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Company Performance - Western Union's stock increased by 1.88% to $8.67, outperforming the S&P 500 which fell by 0.64% [1] - Over the past month, Western Union shares gained 5.71%, surpassing the Business Services sector's gain of 1.84% and the S&P 500's gain of 1.91% [1] Upcoming Financial Results - The upcoming earnings report is expected to show an EPS of $0.43, a decrease of 6.52% compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $1.02 billion, down 1.39% from the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $1.70 per share and revenue at $4.08 billion, reflecting declines of 2.3% and 3.06% respectively from the prior year [3] - Recent analyst estimate revisions indicate a favorable outlook on the business health and profitability [3] Valuation Metrics - Western Union is currently trading at a Forward P/E ratio of 5.01, significantly lower than the industry average of 15.42, suggesting it is trading at a discount [6] - The company has a PEG ratio of 2.92, compared to the Financial Transaction Services industry's average PEG ratio of 1.28 [7] Industry Context - The Financial Transaction Services industry is part of the Business Services sector and holds a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - PayPal Holdings (PYPL) has experienced a 17.9% decline in stock price year to date due to macroeconomic uncertainty and increased competition in the digital payments sector [1][8] - Rivals Visa and Mastercard are expanding their services, with Visa's stock up 10.7% and Mastercard's up 12.1% year to date, raising questions about PayPal's long-term recovery potential [2] - PayPal is transforming into a broader commerce platform with initiatives like "PayPal World," aiming to connect nearly 2 billion global wallet users [3][8] Strategic Developments - The company is investing in AI-driven commerce experiences and expanding crypto integration through its PYUSD stablecoin and "Pay with Crypto" option, positioning itself as a key player in next-generation digital commerce [4] - Venmo is showing strong growth, with Q2 revenues increasing over 20% and total payment volume (TPV) growing 12%, indicating its evolution into a mainstream commerce platform [5][9] - Branded checkout is also a significant growth driver, with over 60% of U.S. branded volume now on PayPal's upgraded experience [6][9] Financial Metrics - PayPal shares are currently trading at a forward 12-month P/E of 12.53X, significantly lower than the industry average of 22.19X and competitors like Visa and Mastercard [10] - The Zacks Consensus Estimate for PayPal's earnings in 2025 is $5.22 per share, reflecting a 12.3% growth over 2024, with a further increase to $5.77 per share in 2026 [11] Growth Strategy - PayPal is focusing on four growth pillars: winning checkout, scaling Venmo, driving payment services profitability, and investing in next-gen technologies like AI and stablecoins [13] - The company boasts over $443 billion in quarterly TPV, providing resilience and a strong long-term investment case despite short-term challenges [14] - The current stock weakness is viewed as an overreaction, presenting a potential buy-the-dip opportunity for long-term investors [15]

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 [2] - The industry operates proprietary global payments networks that facilitate transactions in multiple currencies, benefiting from ongoing digitization accelerated by the pandemic [2] Key Trends - Digital payment innovations such as cryptocurrencies, biometric verification, QR code payments, and Buy Now, Pay Later (BNPL) solutions are reshaping the industry, enhancing user convenience and creating new revenue streams [3] - The rise in global trade, international travel, and remittance demand positions the industry favorably for growth, particularly for companies with advanced cross-border payment platforms [4] - Resilient consumer spending, driven by e-commerce growth and smartphone usage, is expected to sustain transaction growth, with a projected 2.3% year-over-year increase in overall consumer spending in 2025 [5] - Companies are increasingly pursuing mergers and acquisitions (M&A) and tech investments to build integrated digital ecosystems, with potential Federal Reserve rate cuts in 2025 likely to lower financing costs [6] Performance Metrics - The Zacks Financial Transaction Services industry ranks 57, placing it in the top 23% of 245 Zacks industries, indicating positive near-term prospects [8] - The industry has outperformed the Business Services sector and the S&P 500, growing 20.8% over the past year compared to 9.3% for the sector and 16.6% for the S&P 500 [10] - The industry currently trades at a forward 12-month Price/Earnings ratio of 22.24X, slightly below the S&P 500's 22.84X and the sector's 21.95X [13] Company Highlights - PayPal is recognized for its secure digital payment solutions and strategic partnerships, with a 2025 earnings estimate of $5.22 per share, reflecting a 12.3% increase year-over-year [16][17] - WEX benefits from a strong fuel network and strategic acquisitions, with a 2025 earnings estimate of $15.63 per share, indicating a 2.3% rise from the previous year [22][23] - Visa, a leader in digital payments, has a 2025 earnings estimate of $11.43 per share, showing a 13.7% increase year-over-year, supported by strong performance in key markets [25][27] - Mastercard's cross-border payments platform supports over 150 currencies, with a 2025 earnings estimate of $16.31 per share, indicating an 11.7% rise from the previous year [29][30] - Fiserv provides a comprehensive range of payment processing solutions, with a 2025 earnings estimate of $10.21 per share, reflecting a 16% increase year-over-year [33][34]

Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Wex (WEX) and Visa (V) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Investors with an interest in Financial Transaction Services stocks have likely encountered both Evertec (EVTC) and RB Global (RBA) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targe ...

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is Adecco SA (AHEXY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Adecco SA is a member of our Business Services group, which includes 254 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks wi ...

Core Insights - PayPal's Buy Now, Pay Later (BNPL) service is a significant growth driver, with total payment volume increasing over 20% year over year in Q2 2025 and monthly active accounts growing by 18% [1][8] - The average order value for transactions using BNPL is more than 80% higher than standard checkout, leading to increased merchant sales and revenue opportunities [2][8] - PayPal is expanding its BNPL offerings into omnichannel retail with the "Pay Later To Go" product, which allows installment payments in physical stores, enhancing its competitive position [3][8] PayPal's BNPL Performance - BNPL total payment volume rose over 20% year over year in Q2 2025, with active accounts increasing by 18% across nine global markets [1][8] - Retailers utilizing BNPL, such as Ace Hardware, reported a 35% increase in PayPal sales and a sevenfold increase in order size [2][8] Competitive Landscape - Standalone BNPL providers are innovating rapidly, and the entry of major players like Apple is intensifying competition [4] - Block's Afterpay saw a 17% year-over-year growth in BNPL Gross Merchandise Value (GMV) to $9.11 billion in Q2 2025, with a high on-time payment rate of 96% [5] - Affirm Holdings reported a 45.6% year-over-year increase in total transactions, reaching 31.3 million, with a 94% repeat transaction rate [6] Valuation and Estimates - PayPal shares have declined 20.9% year to date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 12.13X, significantly lower than the industry average of 22.17X, indicating a potentially undervalued position [10] - The Zacks Consensus Estimate for PayPal's earnings in 2025 is $5.22 per share, reflecting a 12.3% growth over 2024, with a further estimate of $5.77 for 2026, suggesting 10.5% growth year over year [11]

Company Overview - CompoSecure, Inc. (CMPO) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Price Performance - CMPO shares have increased by 5.93% over the past week, outperforming the Zacks Financial Transaction Services industry, which rose by 2.47% [6] - Over the last quarter, CMPO's shares have risen by 41.76%, and they are up 67.07% over the past year, while the S&P 500 has only moved 9.37% and 14.67%, respectively [7] Trading Volume - The average 20-day trading volume for CMPO is 1,156,329 shares, which is considered a bullish sign when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for CMPO have been revised upwards, increasing the consensus estimate from $0.92 to $0.95 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions during the same period [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, CMPO is positioned as a promising investment opportunity [12]