Report
Dave Nicoski ...
  • Ross LaDuke
EUR 46.42 For Business Accounts Only

Insights: Bullish Stocks

Data Processing & Outsourcing Services Stocks To Benefit From A Post-COVID World -- Buy MA, V, FISV, DXC, ADS, FOUR, TTEC, CNDT, GSKY, CASS, and DAVA

By now, investors have gotten used to the “reopening” theme. Today we are recommending adding exposure to Data Processing & Outsourcing Services stocks which are poised to benefit from the “reopening” of the pocket book and a pickup in spending by both consumers and businesses. Most importantly, the technicals are confirming this story, suggesting now is the time to add exposure.

· The Vermilion Services Group SV-01 Data Processing & Outsourcing Svcs., Large-Cap is breaking out in terms of price, while RS has pulled back to 15-year uptrend support... see chart below. This is precisely where we would expect outperformance to resume, and recent bullish inflections in Mastercard (MA) and Visa (V) are confirming this thesis -- more on them below. And when the market leaders (MA & V) are looking good, smaller-cap names are often attractive as well (which is most certainly the case). Additionally, we intentionally omitted Square (SQ) and PayPal (PYPL) from this report as they have already made big upside moves and we see better buy opportunities elsewhere.

· Both Mastercard (MA) and Visa (V) have been huge winners ever since going public back in the 2000s. Along the way, they have had the tendency of having healthy 1-2 year price and RS consolidation phases, only to emerge for another upside move. The charts of MA and V tell us the most recent consolidation phase is coming to a close, and price and RS appreciation is set to resume
Underlyings
Adidas AG

ACM Managed Dollar Income Fund is a non-diversified, closed-end management investment company. This closed-end investment fund is designed for investors who seek high current income and capital appreciation. In order to achieve this objective, Co. invests primarily in high-yielding, U.S. and non-U.S. fixed income securities, denominated in U.S. dollars, that it expects to benefit from improving economic and credit fundamentals. Co. may utilize leverage through the investment techniques of reverse repurchase agreements and dollar rolls. As of Sept 30 2007, Co. had total assets of $192,614,325 and investment portfolio totalled $178,906,534.

Cass Information Systems Inc.

Cass Information Systems is a financial holding company. The company provides payment and information processing services to manufacturing, distribution and retail enterprises across the U.S. The company's services include freight invoice rating, payment processing, auditing, accounting and transportation information. The company also processes and pays energy invoices, which include electricity and gas as well as waste and telecommunications expenses, and is a provider of telecom expense management solutions. Additionally, the company provides a business-to-business payment platform for clients that require a financial technology partner. Through its bank subsidiary, the company also provides commercial banking services.

Conduent Inc.

Conduent is a holding company. Through its subsidiaries, the company is a provider of business process services in transaction-intensive processing, analytics and automation. The company's Commercial Industries segment provides business process services and customized solutions to clients in a variety of industries. The company's Government Services segment provides government-centric business process services to U.S. federal, state and local and foreign governments for transportation, public assistance, program administration, transaction processing and payment services. The company's Transportation segment provides systems and support services to transportation departments and agencies globally.

DXC Technology Co.

DXC Technology is an end-to-end IT services company. The company provides a range of information technology services and solutions primarily in North America, Europe, Asia, and Australia. The company operates through two segments: Global Business Services, which provides technology solutions that help the company's clients address main business challenges and improve digital transformations tailored to each client's industry and objectives; and Global Infrastructure Services, which provides a portfolio of offerings that deliver predictable outcomes and measurable results, while reducing business risk and operational costs for clients.

Endava PLC ADS

Fiserv Inc.

Fiserv is a provider of financial services technology. The company provides account processing systems, electronic payments processing products and services, internet and mobile banking systems, and related services. The company's segments are: First Data, which provides merchant acquiring, e-commerce, mobile commerce, and other business solutions; Payments and Industry Products, which provides electronic bill payment and presentment services, internet and mobile banking software; and Financial Institution Services, which provides financial institutions with account processing services, item processing and source capture services, loan origination and servicing products, and cash management, among others.

GreenSky

GreenSky is a holding company. Through its subsidiaries, the company is a technology company Powering Commerce at the Point of SaleSM. The company's platform is powered by a proprietary technology infrastructure that facilitates merchant sales, while reducing the friction, and improving the economics associated with a consumer making a purchase and a bank extending financing for that purchase. It supports the transaction lifecycle, including credit application, underwriting, real-time allocation to the company's Bank Partners, document distribution, funding, settlement and servicing.

Horizons Industry 4.0 Index ETF

MASTERCARD INCORPORATED

Mastercard is a technology company in the global payments industry. The company's solutions enabling consumers to use electronic forms of payment instead of cash and checks. The company provides a range of payment solutions and services using its brands, including Mastercard?, Maestro? and Cirrus?. The company is a multi-rail network that provides customers one partner to turn to for their domestic and cross-border payment needs. The company has additional payment capabilities that include automated clearing house transactions. The company also provides offerings such as cyber and intelligence products, information and analytics services, consulting, loyalty and reward programs and processing.

TTEC Holdings Inc.

TTEC Holdings is a customer experience technology and services company. The company has four segments including Customer Strategy Services, which provides services in customer experience strategy and operations, insights, system and operational process optimization, and culture development; Customer Technology Services, which includes system design consulting, customer experience technology product, implementation and integration consulting services, and management of clients' cloud and on-premise solutions; Customer Growth Services, which provides technology-enabled sales and marketing solutions; and Customer Management Services, which includes customer experience delivery solutions.

Visa Inc. Class A

Visa is engaged in digital payments. The company facilitates payments between consumers and businesses. The company is focused on its proprietary network, VisaNet, to provide products and services. The company provides a portfolio of business payment solutions, including small business, corporate (travel) cards, purchasing cards, virtual cards/digital credentials, non-card cross-border business-to-business payment options and disbursement accounts, covering various main industry segments around the world. The company also provides several capabilities and services, including fraud prevention and security, processing, loyalty, merchant and digital solutions, consulting and data solutions.

Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Dave Nicoski

Ross LaDuke

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