Dj Holder Tech Crossover Sells 7500,000 Of Payoneer Global Inc >Payo

Investors might want to bet on Payoneer Global Inc. (PAYO), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Payoneer Global is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Payoneer Global imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Earnings Estimate Revisions for Payoneer Global

This company is expected to earn $0.32 per share for the fiscal year ending December 2024, which represents a year-over-year change of 33.3%.

Analysts have been steadily raising their estimates for Payoneer Global. Over the past three months, the Zacks Consensus Estimate for the company has increased 30.3%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

The upgrade of Payoneer Global to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Zacks Investment Research

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, November 13:

Toast, Inc. TOST: This cloud-based digital technology platform provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 20% over the last 60 days.

Toast, Inc. Price and Consensus

Toast, Inc. price-consensus-chart | Toast, Inc. Quote

Toast's shares gained 59.1% over the last three months compared with the S&P 500’s advanced of 9.7%. The company possesses a Momentum Score of A.

Toast, Inc. Price

Toast, Inc. price | Toast, Inc. Quote

Fortinet, Inc. FTNT: This cybersecurity and convergence of networking and security solutions provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days.

Fortinet, Inc. Price and Consensus

Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote

Fortinet's shares gained 36.2% over the last three months compared with the S&P 500’s advanced of 9.7%. The company possesses a Momentum Score of A.

Fortinet, Inc. Price

Fortinet, Inc. price | Fortinet, Inc. Quote

Payoneer Global Inc. PAYO: This financial technology company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 28% over the last 60 days.

Payoneer Global Inc. Price and Consensus

Payoneer Global Inc. price-consensus-chart | Payoneer Global Inc. Quote

Payoneer Global's shares gained 54.3% over the last three months compared with the S&P 500’s advanced of 9.7%. The company possesses a Momentum Score of A.

Payoneer Global Inc. Price

Payoneer Global Inc. price | Payoneer Global Inc. Quote

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

Zacks Investment Research

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Klaviyo, Inc. (KVYO) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Klaviyo, Inc. is a member of our Business Services group, which includes 308 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Klaviyo, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for KVYO's full-year earnings has moved 62.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that KVYO has returned about 31.5% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 26.6%. This shows that Klaviyo, Inc. is outperforming its peers so far this year.

Another Business Services stock, which has outperformed the sector so far this year, is Payoneer Global Inc. (PAYO). The stock has returned 103.1% year-to-date.

In Payoneer Global Inc.'s case, the consensus EPS estimate for the current year increased 30.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Klaviyo, Inc. is a member of the Technology Services industry, which includes 165 individual companies and currently sits at #70 in the Zacks Industry Rank. On average, this group has gained an average of 53.5% so far this year, meaning that KVYO is slightly underperforming its industry in terms of year-to-date returns. Payoneer Global Inc. is also part of the same industry.

Investors interested in the Business Services sector may want to keep a close eye on Klaviyo, Inc. and Payoneer Global Inc. as they attempt to continue their solid performance.

Zacks Investment Research

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

UBS Group AG UBS: This financial holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 18.9% over the last 60 days.

UBS Group AG Price and Consensus

UBS Group AG price-consensus-chart | UBS Group AG Quote

Kingstone Companies, Inc. KINS: This property and casualty insurance company has seen the Zacks Consensus Estimate for its current year earnings increasing 36% over the last 60 days.

Kingstone Companies, Inc Price and Consensus

Kingstone Companies, Inc price-consensus-chart | Kingstone Companies, Inc Quote

HUYA Inc. HUYA: This live-streaming company has seen the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days.

HUYA Inc. Sponsored ADR Price and Consensus

HUYA Inc. Sponsored ADR price-consensus-chart | HUYA Inc. Sponsored ADR Quote

Payoneer Global Inc.PAYO: This financial technology company has seen the Zacks Consensus Estimate for its current year earnings increasing 28% over the last 60 days.

Payoneer Global Inc. Price and Consensus

Payoneer Global Inc. price-consensus-chart | Payoneer Global Inc. Quote

Toast, Inc. TOST: This cloud-based digital technology platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 20% over the last 60 days.

Toast, Inc. Price and Consensus

Toast, Inc. price-consensus-chart | Toast, Inc. Quote

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research