Evertec (EVTC) Moves 5.4% Higher: Will This Strength Last?
Evertec (EVTC) shares ended the last trading session 5.4% higher at $31.20. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.8% loss over the past four weeks.
Increased optimism over an accelerated shift to digital payments may have driven the stock higher. Evertec is capitalizing on the digital trend by enhancing its digital solutions, such as Placetopay (an e-commerce gateway), ATH Movil and ATH Business. It has invested in advanced technologies, including contactless payments and mobile commerce solutions, to meet increasing consumer and merchant demand.
Prominent investment firms are increasing their stakes in Evertec to capitalize on its growth prospects. The company is expanding its market reach by targeting underpenetrated regions and forming strategic partnerships with fintech companies and financial institutions. Additionally, it has focused on improving security features and ensuring regulatory compliance, which has helped build trust and attract more users to its platforms.
This payment processing company is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -2.8%. Revenues are expected to be $210.87 million, up 26.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Evertec, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EVTC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Evertec is a member of the Zacks Financial Transaction Services industry. One other stock in the same industry, Repay Holdings (RPAY), finished the last trading session 3.5% lower at $9.17. RPAY has returned -12.6% over the past month.
For Repay Holdings , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. This represents a change of +5.3% from what the company reported a year ago. Repay Holdings currently has a Zacks Rank of #2 (Buy).
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Evertec, Inc. (EVTC) : Free Stock Analysis Report
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