Best best-of-breed payment stocks to collect
- Payment stocks have sold off significantly lately.
- Most of them have moved to a bear territory.
- We identify three best-of-breed payment stocks to watch.
The global payment industry is going through a difficult time, which has left many companies reeling. There are concerns about low global growth and the fact that the Russian crisis has led to significant disruptions in the past few weeks. Here are some of the top payment stocks to put in your radar.
Block (NYSE: SQ) is a leading payment company that offers services to both individuals and corporates. The company’s main product allows businesses to collect payments in their stores and online. It also owns Cash App, a company that provides a peer-to-peer payment solution to individuals.
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And this year, it became a leading player in the buy now, pay later industry after it completed its purchase of AfterPay, the Australian company. Block, which was previously known as Square, is also a medium in which people use to buy Bitcoin and other cryptocurrencies.
The Block stock price jumped sharply in February after the company published strong quarterly results. It rose from a low of $82 to a high of $130. Recently, it has pared back some of those gains. It remains to be about 60% below its all-time high.
Still, there is a likelihood that the stock will continue doing well in the long term. For one, it has no presence in Russia and its growth is still strong.
PayPal (NASDAQ: PYPL) has been a key underwhelming stock in the past few months. The stock has crashed by almost 70% from its all-time high and is hovering near its lowest level since April 2020. This means that it has undone all gains that it did during the Covid pandemic. Along the way, the company has lost more than $200 billion in market value.
While the PayPal stock price has crashed, there is a likelihood that it will bounce back. For one, its growth is still solid and the shares are a bit undervalued. For example, it has a forward PE of just 22, which is lower than that of the S&P 500.
Mastercard (NYSE: MA) is another popular payment company that has been under pressure in the past few weeks. The stock has crashed by over 17% from its highest level this year meaning that it is approaching its bear territory.
The company will be under pressure this week after it announced a decision to exit the Russian market. Still, in the long-term, the Mastercard business will continue growing as the world economy reopens.