Euronet's Fee-Based Businesses Continue To Support A Healthy Growth Outlook

Euronet (NASDAQ:EEFT) has been a consummate second-chance stock for me over the years. While this leading operator of ATMs, digital payment, and money transfer systems has maintained a strong record of revenue and EBITDA growth, that performance hasn't always been as consistent as the Street would like. Add in periodic fears about competitors like Western Union (NYSE:WU) and MoneyGram (NYSE:MGI), new money transfer options, and pricing pressure from major partners like Wal-Mart (NYSE:WMT), and the shares have reliably given investors a roughly 15%-20% pullback opportunity at least once a year for a few years. 

These shares have been strong since the bottom of the last pullback, rising about a third since early February (and about 25% since my last update). Both the underlying EFT and money transfer businesses remain strong, and the epay operation is arguably better than it looks as the company transitioning away from mobile top-up and toward newer offerings like iTunes and Google Play, but the shares are not exactly bargain-priced today. 

Given the strong underlying trends in the business and the history of meaningful pullbacks, I'd give this stock a prominent spot on a watchlist in anticipation of another pullback opportunity at some point in the next year or so.

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Euronet's Fee-Based Businesses Continue To Support A Healthy Growth Outlook