Investors are plunging into the future, exploring up to 30 thematic investment screens that unveil the transformative power of tomorrow’s trends. From cutting-edge technologies to sustainable energy and healthcare breakthroughs, Zacks Thematic Screens offer a window into investments that resonate with your convictions.
Let’s delve into the burgeoning domain of ‘Mobile Payments’ – a realm where paper money is fast becoming an artifact of the past. Discover Financial Services (DFS), American Express (AXP), and PayPal (PYPL) are a few firms unveiled by the thematic screen that warrant a closer study.
The Mobile Payments Paradigm
The journey from physical currency to digital exchanges, fueled by a quest for ease and security, has fueled an astronomical surge in mobile payments. These transactions are reshaping commerce, from everyday purchases like meals and groceries to luxury indulgences.
This thematic screen explores a diverse spectrum of innovations, including payment infrastructures, software services, digital wallets, and smartcards.
American Express (AXP): Anticipated Quarterly Report
Anticipation runs high for AXP’s upcoming quarterly results, as bullish revisions have marked the period since mid-July. The company is poised to unveil earnings of $3.27 per share – a figure suggesting steadiness in year-over-year earnings, with a prevailing trend of upward revisions.
The latest quarter saw AXP firing on all cylinders, boasting a record-breaking $16.3 billion in revenue. Growth in the customer base was robust, highlighted by 3.3 million new card acquisitions and double-digit surges in fee revenues.
While AXP’s valuation may seem somewhat rich compared to historical standards, its 1.4X PEG ratio signals a reasonably fair price for anticipated growth.
Discover Financial Services (DFS): Exceptional Performance
DFS’s recent fiscal outing exceeded market expectations, surpassing both earnings per share and revenue projections by notable margins – with growth rates hitting 70% and 20%, respectively. While the initial market response was subdued, subsequent trading days witnessed bullish activity.
DFS stocks have scaled unprecedented heights post-earnings, marking nearly a 40% surge in 2024 and outperforming the S&P 500. The period also saw modest loan growth, echoing broader economic optimism, with a 4% rise in total loans year-over-year adjacent to a 10% uptick in Personal Loans.
PayPal: Elevating Expectations
As a trailblazer in online payment solutions, PayPal’s trajectory is on an upswing, evident in an enhanced outlook across metrics. The company’s shares have rebounded impressively in 2024 after weathering turbulent times, with a 30% uptick since the last earnings call.
Emboldened by its latest financials, PayPal raised its 2024 projections and bolstered share repurchases – a strategy that elicited a positive market response. The increased buyback initiatives could provide a safety net for the stock and align with the company’s consistent buyback strategies in recent years.
The Investment Bottom Line
Zacks Thematic Screens ensure a panoramic view of 30 evolving investment themes that steer you towards tomorrow’s opportunities. For those drawn to the ‘Mobile Payments’ framework, the trio of Discover Financial Services (DFS), American Express (AXP), and PayPal (PYPL) emerges as compelling stocks that beckon a deeper exploration.
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