Proift when consumers pull out the cards
Financial Tides likes Hypercom Corp. ( HYC) a global provider of electronic payment solutions, including multi-function point-of-sale terminals, peripherals, network products, Ascendent payment and transaction software and Internet-based and electronic commerce payment solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications. These applications provide competitive value-added programs, improved business performance and low total cost of ownership.
All signs are ripe that the economy is in recovery and there is a lot of pent up consumers consumption about to explode both here and abroad. In this new economy cash and checks are no longer king. Purchases of all sizes will be made on cards: debit or credit - it doesn't matter Hypercom will be properly positioned to take advantage of it.
Wall Street has noticed this stock and has 4 buy reports recently published. Although sales are expected to increase only 9.70% this year and 8.60% next year; Wall Street thinks earnings are the story. They estimate an increase in EPS of 113.30% this year, 43.80% next year and a 5 year compounded EPS growth rate of 28.00%. I like these numbers too.
Recent price appreciation is reflected in Barchart's technical buy signal of 100% -- all 13 of Barchart's technical indicators are on green. The stock has appreciated 22.56% in the last month and hit 13 new highs in the last 20 trading sessions. The stock is trading above its 20, 50 & 100 day moving average. It trades around 5.09 with a 50 day moving average of 4.25.
Investor sentiment as measured on Motley Fool is positive with the CAPS members voting the stock will beat the market by a vote of 91 to 15 with the more experienced All Stars agreeing 30 to 2. Fool notes that of the Wall Street columnist they follow all 3 articles have been positive.
If you think the economy will benefit from a need to spend again here are this stocks points:
1 - Recent and consistent price appreciation
2 - 100% Barchart technical buy signal
3 - Positive investor sentiment
4 - Buy recommendations from Wall Street based on increases in sales and earnings
Jim Van Meerten is an investor who writes on financial matters on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in HYC at the time of publication