Investing in the Financial Services Sector

Since the start of the new year the stock market has been on a bumpy ride with sharp ups and downs. There is an old adage that says: “It doesn’t make any difference who wins and loses, your brokerage firm will always make their commission. The same is true for retail transactions. Whenever you use your credit card, the card company makes money. With that in mind, let’s look at the key stocks in the Financial Services Sector. These are companies that service large banks, brokerage houses and retail purchases. Here are some stocks that have been moving higher. (Barchart.com)

Envestnet Inc. (ENV) Recent Price $43.73 52 week high/low is $52.48/$15.34 EPS is $.40 PE ratio is 110.45 Market Cap is $1.48 B Envestnet provides web based investment solutions and services to financial advisors. This allows financial advisors to provide clients with a wide range of investment solutions and services. Their technology services focus on the front, middle and back office needs.

Alliance Data Systems (ADS) Recent price is $278.78 52 week high/low is $289.78/$152.80 EPS is $9.38 PE ratio is 30.51 Market Cap is $14.02 B Alliance provides transaction, credit and marketing services to retail companies in North America. Their focus is on facilitating and managing electronic transaction between clients and customers in store, catalog and on the Internet.

Verifone Systems (PAY) Recent price is $29.50 52 week high/low is $30.72/$15.34 EPS is $1.04 PE ratio is 28.90 Market cap is $3.22 B Verifone provides secure electronic payment solutions to financial, retail, hospitality, petroleum, transportation, government and healthcare companies.

Global Payments Inc (GPN) Recent price is $72.58 52 week high/low is $72.83/$43.73 EPS is $3.92 PE ratio is 18.29 Dividend Is $.08 (.11%), Market cap is $5.29 B Global Payments provides electronic payments to consumers, merchants, individual sales organizations, government agencies and multinational companies in North America and Europe. It also provides money transfer services to the US, Europe, Latin America, Morocco and the Philippines.

Fidelity National Information Systems (FIS) Recent price is $55.47 52 week high/low is $56.08/$37.52 EPS is $2.83 PE ratio is 19.66 Dividend is $.88 (1.58%) Market cap is $16.15 B Fidelity provides credit, debit and merchant card processing, e-banking check risk management and check cashing services for merchants and institutions worldwide.

MasterCard (MA) Recent price is $77.94 52 week high/low is $84.75/$50.82 EPS is $2.62 PE ratio is 29.68 Dividend is $.24 (.31%) Market cap is $93.83 B Mastercard provides an e-commerce link among financial institutions, businesses, cardholders and merchants worldwide. It also provides consulting services to financial institutions and merchants.

Vantiv Inc. (VNTV) Recent price is $31.99 52 week high/low is $34.42/$21.73 EPS is $1.43 PE ratio is 22.36 Market cap is $6.08 B Vantiv provides advanced technology for businesses and financial institutions. They focus on acquiring and processing transactions, value added services, merchant services and reporting for electronic payment transactions.

Visa (V) Recent price is $225.56 52 week high/low is $235.50/$155.68 EPS is $7.85 PE ratio is 28.52 Dividend is $1.60 (.71%) Market cap is $175.67 B Visa is the world’s largest retail electronics payments company and the most recognized worldwide. It services financial institutions, merchants, consumers, businesses and government agencies.

The above discussion is neither a recommendation to buy nor to sell these securities. You must always do your own diligent research.

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