O’Neil Financial Sector Weekly

Financial gained 1.4% over the last five sessions and declined 2.3% over the last four weeks.

Leading: Finance – Commercial Loans, Finance – Investment Bank & Brokers, Finance – Investment Management
Lagging: Banks – Foreign, Insurance – Acc. & Health, Banks – Money Center

Payment Processors

Key points from this report:

 

  • Despite the U.S. markets pulling back, card-present payment processors are breaking out from their consolidation bases. Visa (V), Mastercard (MA), Fiserv (FISV), and Global Payments (GPN) on our U.S. Focus List are actionable and we would recommend adding to positions.
  • Data suggest that U.S. communities are set to open further from the steady distribution of COVID vaccines.
    • Hotel and flight volumes are on the rise.
    • Monthly data from V and MA shows sequential improvements in volume  and transactions.
  • As economies open further in the U.S. and elsewhere, card-present payment processors should benefit from this trend.