Baird named seven stocks with solid setups for earnings season within the financial technology, payments, and services sector in its Equity Research Morning Report, published on Monday.
These are the stocks, all rated overweight:
- Fiserv Inc. (NYSE:FI) – With a good year-to-date performance “and likely a great 2024 grinder,” the stock should see mid-teens EPS growth in the next few years, analysts said.
- WNS Holdings Limited (WNS) – The stock has an accelerating growth story. Analysts said its return to normalized valuation could bring 50% upside due to its potential for index ownership.
- Fidelity National Information Services Inc. (FIS) – “Closing merchant spin could be near-term catalyst.”
- Toast Inc. (TOST) – Although restaurant trends were weaker in January, this stock has the fastest growing trends among the stocks covered by Baird, “with great Q3 incremental margins, two quarters of solid FCF (free cash flow), and mixed sentiment,” analysts said.
- Visa Inc. (V) – Analysts expect a mild beat on earnings, and a valuation that remains attractive, with 9% lower than typical premium around 2021-2023.
- WEX Inc. (WEX) – The stock’s underlying EPS growth will likely reach more than 15% in 2024, analysts said.
- IBEX Limited (IBEX) – The stock is “well positioned, given small market share, but serving big clients that can grow,” the report said. In addition, the stock is not heavily reliant on the volatile tech industry.
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