Online payment processors are in the catbird’s seat now that people are primarily from shopping from home during the coronavirus pandemic.  Even if the economy reopens in the weeks to come, consumer behavior will have changed – in some cases permanently.  Those who were previously inclined to shop at brick-and-mortar facilities now understand just how easy it is to shop from home.  As a result, that many more people will spend their money online through e-merchant websites rather than at local stores, be it big boxes or mom and pop shops.  SQ, GPN, STNE and COUP stand to benefit from the expedited shift toward e-commerce.

Square Inc. (SQ)

Establishing an online store is not as cut and dry as most assume.  This type of endeavor requires the assistance of hardware and software specialists in order for the business to accept digital payments.  Enter SQ.  The company’s hardware/software solutions set the stage for seamless online sales along with in-depth data tracking and analysis.

SQ recently jumped 10% after beating first-quarter earnings estimates.  SQ revenue jumped nearly 45% on a year-over-year basis.  Priced at $75.38, SQ is about $10 away from its 52-week high of $87.25.  It is hard to believe SQ was priced at $38 on March 20.

Aside from facilitating online payments, SQ also provides inventory control, marketing and payroll services to boot.   In other words, new businesses that emerge from the coronavirus pandemic as well as those looking to transition to the online realm are likely to need SQ services.  If you are still on the fence with SQ, consider the fact that the stock has a POWR Rating of B, with solid marks across the board from its buy and hold grade to its trade grade and beyond.

Global Payments (GPN)

Online payment facilitation.  These three words are music to investors’ ears in our coronavirus era.  GPN is one of the world’s leading online payment facilitators, helping multinational corporations, comparably small merchants and even governmental agencies process electronic payments.

Take a look at TipRanks’ average analyst price target and recommendations for GPN and you might not believe your eyes.  GPN trades at $175 yet has an average analyst price target of $196.  A whopping 23 analysts recommend buying the stock, two recommend holding and none are in favor of selling.

GPN was recently highlighted in this Motley Fool article as one of the top stocks to lead the push toward contactless payments in the coronavirus era and beyond.  Furthermore, GPN’s first-quarter results beat expectations by nearly 10%, giving investors even more reason to scoop up shares of this high-flying payment processor.

Coupa Software (COUP)

Modern day commerce is centered on relationships between B2C businesses and suppliers.  COUP excels in connecting these two groups, providing platforms that bridge suppliers with merchants and also providing valuable insight pertaining to cost control solutions.

COUP’s one-year chart was quite rocky up until early April when it rapidly ascended from $130 to its current price of $196.  COUP has a POWR Rating of A, meaning it is a strong buy.  In fact, COUP grades out with an A in every single POWR Rating category.  The stock also has a Zacks rank of 2-Buy.

StoneCo (STNE)

Thanks to the rise of cryptocurrency such as Bitcoin, the days of tangible currency might be numbered.  Financial tech companies such as STNE stand to benefit from the seemingly inevitable shift to digital transactions.  STNE provides cloud-based tech platforms for efficient electronic commerce both online and in brick-and-mortar stores.

STNE dipped down to $17 and change this past April yet zoomed right back on up to $27 in the weeks to follow.  TipRanks’ average analyst price target for the stock is $40.67.

STNE is based in Brazil, a country with a rapidly growing financial technology industry, making the company’s services that much more in-demand.  Furthermore, investing guru Warren Buffet has given the stock his much-revered vote of confidence.

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SQ shares were trading at $74.54 per share on Monday morning, down $1.51 (-1.99%). Year-to-date, SQ has gained 19.15%, versus a -8.89% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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