Payments Industry Stock Price Tracker

Navigator Edition: November 2012
By: Collin Bauer

Figure 1 is the November Payments Industry Stock Price Tracker.  The chart measures current stock prices and market caps (as of November 30, 2012) as well as movement over the last 30 days, and year-to-date.  After mixed results in October, the companies we track across the payments value chain again experienced mixed results in November, but still maintained an average YTD increase of over 30% relative to the broader market’s 11% gain thus far in 2012.

In summary:

Stocks within the issuing sector fell 2% on average in November following third quarter earnings announcements and the outcome of the Presidential election. The performance of these stocks varied significantly as Citi’s stock price fell 9% and FleetCor’s stock price gained 10% during the same period. FleetCor’s stock price jumped after its third quarter earnings beat most analyst estimates and the company’s year-end guidance was raised. FleetCor, along with Bank of America and Discover are all poised to gain over 50% for the year.

The processor / acquirer sector shared mixed results in November, but in aggregate performed better than the overall market. After falling 19% during the month of October, Heartland’s stock price jumped 4% over the last 30 days after posting record profits in the third quarter. FIS also posted positive gains in November after beating third quarter analyst expectations, and is up 9% from thirty days ago. In a move intended to boost its acquiring services, TSYS announced its plan to purchase ProPay and expects to close the deal by the end of the year.

The two networks tracked posted similar, positive, gains in November; in aggregate, the sector was up 4% from 30 days ago. Despite forecasts for a slowing global economy, Visa and MasterCard beat analyst expectations in their third quarter earnings. Over the last two months, Visa and MasterCard stock prices have fluctuated on news surrounding the potential $7.25 billion settlement between the two networks and lawyers representing over 7 million retailers.

Figure 1: Monthly Average Stock Price Tracker
Source: Yahoo Finance, First Annapolis Consulting research and analysis.

For more information, please contact Collin Bauer, Analyst specializing in Credit Card Issuing,

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