Boston, MA 03/19/2014 (wallstreetpr) – VeriFone Systems Inc (NYSE:PAY) is provider of electronic payment services to a number of business segments from restaurants to retails and hospitals. In the past weeks the stock is in an all-out uptrend. But when things get too exciting, it is important to pause and ask “Why?”
If there is nothing solid behind the stock’s surge, then as usual, you can always expect the trend to be short-lived. So then, does VeriFone Systems fit the definition of a good stock? We can better understand this stock by looking at the key performance indicators, analyst sentiments and what the management is up to.
Does the stock show strength?
VeriFone Systems Inc (NYSE:PAY) had attractive earnings in the most recently reported quarter. Revenue figures were also encouraging and its debt burden is not out of place. Taking a look at the performance in the most recent quarter should help in unmasking the strength or weakness of the stock.
The company reported earning 31 cents per share in the fiscal 2014 first quarter. That contrasted with 27 cents which analysts predicted. The revenue was strongly above consensus at $436 million against $429.60 million.
Analyst sentiment
Looking at the result for the last quarter, it is clear that the stock exceeded consensus views. This should tell you that there are underlying strengths in the stock than Wall Street can accurately capture.
Thus, in order to realign with the realities, analysts are increasingly becoming bullish on the stock. And this has been fueling the stock price even higher. The latest major shift in analyst sentiment came from Jefferies Group that corrected their price target from $34 to $38. The brokerage has buy rating on the stock.
Shares of VeriFone Systems Inc (NYSE:PAY) closed $34.27, up 3.75 percent. The Tuesday uptrend in the stock led to establishing of a new 52-week high at 34.53. To trade in the range of $34, the stock emerged from a one-year low of $15.34.
Management in action
The gains witnessed in VeriFone Systems Inc (NYSE:PAY) own their origin in the attractive manner that the management has been handling things. The management is not only fast-decimating debts, but is also keen on exploiting fresh opportunities while keeping expenses and costs low.
Thus, if the above are any guide, you can expect the uptrend in the stock to continue for the long haul.
