Euronet Worldwide, Inc. EEFT revealed its acquisition of Infinitium Holdings Pte Ltd, aimed at bolstering its Ren payments platform. Infinitium’s product suite promises added safeguards against customer fraud and merchant chargebacks in online transactions. This strategic maneuver stands to fortify EEFT’s payment network by preventing potential security breaches. The financial terms of the deal remain undisclosed but are anticipated to yield long-term benefits for the company.
Infinitium specializes in payment authentication and risk management solutions, including 3D Secure, which is instrumental in identifying fraudulent activities in e-commerce transactions. This authentication mechanism serves as a robust shield, heightening security measures and minimizing the risk of unauthorized transactions. Furthermore, Infinitium offers a comprehensive omnichannel payment gateway service for merchants and acquirers.
The timing of this acquisition is propitious, aligning with regulatory mandates in India, the European Union, Singapore, and other jurisdictions, making 3DS compulsory to bolster defenses against merchant chargebacks and fraudulent activities. While this requirement is yet to be enforced in Latin America and the United States, augmenting the security infrastructure is an astute tactical move given the escalating fraud rates in the digital payment landscape.
Earlier this month, EEFT made inroads into Belgium and Mexico, expanding its independent ATM network. This strategic expansion further extends EEFT’s ATM footprint to 38 countries across diverse regions, including Asia-Pacific, Africa, Europe, and the Americas. With Belgium becoming the 32nd country to join EEFT’s European network and Mexico marking its foray into the emerging LATAM market, these expansion initiatives are poised to amp up EEFT’s EFT segment revenues. Notably, the EFT ATMs segment accounted for 34% of EEFT’s profit in 2023.
The company’s continued efforts to bolster existing operations and penetrate new geographies underscore its commitment to executing a robust global expansion strategy. EEFT’s operational prowess coupled with its cutting-edge technology positions the company at the vanguard of payment innovation.
Stock Performance and Market Position
Euronet currently holds a Zacks #2 (Buy) ranking, signifying favorable prospects for investors.
Over the past six months, EEFT shares have surged by 30.7%, outpacing the industry’s growth of 15.6%.
Image Source: Zacks Investment Research
Key Players in Financial Services
Some top-performing stocks in the Financial – Miscellaneous Services sector include Alerus Financial Corporation ALRS, Axos Financial, Inc. AX, and Primis Financial Corp. FRST, each receiving a Zacks Rank #1 (Strong Buy). Explore the full list of Zacks #1 Rank stocks here.
The consensus estimate for Alerus Financial’s 2024 earnings stands at $1.53 per share and has remained steady over the past week. ALRS has outperformed earnings predictions in three of the last four quarters, with an average surprise of 14.4%.
The Zacks consensus estimate for Axos Financial’s fiscal 2024 earnings is $7.22 per share, reflecting a robust 42.4% year-over-year surge. Notably, it has witnessed four upward estimate revisions over the past month, with no negative revisions. Additionally, the consensus estimate for Axos Financial’s fiscal 2024 revenues is pegged at $1.1 billion.
For Primis Financial, the Zacks consensus estimate for 2024 earnings is $1.57 per share, indicative of an impressive 68.8% year-over-year rise. The consensus estimate for Primis Financial’s 2024 revenues totals $154.9 million.
Zacks Investment Research offers:
Among thousands of stocks, 5 Zacks experts have hand-picked their top favorites, each poised to skyrocket by +100% within months. Standing out from the selection, Director of Research Sheraz Mian has identified one with the most explosive potential.
Accredited with a “watershed medical breakthrough,” the company is diligently developing a robust pipeline of projects aimed at significantly impacting patients with ailments related to the liver, lungs, and blood. This timely investment opportunity allows you to capitalize on its resurgence from a bear market slump.
Could it surpass recent high-performing stocks like Boston Beer Company, which registered a +143.0% surge in slightly over 9 months, or NVIDIA, boasting a remarkable +175.9% growth within a year?
Explore Our Leading Stock Pick and 4 Runners Up for Free
Euronet Worldwide, Inc. (EEFT) : Free Stock Analysis Report
Primis Financial Corp. (FRST) : Free Stock Analysis Report
AXOS FINANCIAL, INC (AX) : Free Stock Analysis Report
Alerus Financial (ALRS) : Free Stock Analysis Report
Read the full article on Zacks.com here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
