Note from the Publisher: FINALLY! A call on individual stocks in the fintech sector, by Barron’s no less. Now FintekNews covers the Nasdaq KFTX Fintech Index DAILY, so you can always find a sector overview here. In the near future, we’ll also be rolling out a subscription newsletter with fintech picks. In the meantime……
“Wedbush: We believe the recent sector rotation away from financial-technology names to financials and possible post-election “triggers” provides exceptional buying opportunities for our 2017 top picks.
A combination of strong fundamentals (i.e., relatively lower global penetration of electronic payments (30%-40% of global purchases), unlocking/expanding various merchant categories), potential regulatory relief (abating risk of credit interchange legislation), accelerating economic growth/inflation, as well as attractive corporate tax schemes (cash repatriation, significantly lower corporate tax rate), bode well for financial technology. In addition to structural/cyclical challenges, a combination of rising costs associated with the H1B visa program as well as ongoing “anti-outsourcing” rhetoric could potentially cap information-technology services sector valuations.
Our top picks for 2017 include Outperform-rated Global Payments (GPN), Fidelity National Information Services (FIS), Accenture (ACN) and EPAM Systems (EPAM).