Stockchase Opinions

Jim Cramer - Mad Money Shift4 Payments FOUR-N DON'T BUY Oct 19, 2020

Recently IPO'd. It's a a payments stock, and payments are a hot industry. They process payments in restaurants and brick-and-mortar retail. Its earnings have beaten the street. FOUR is up 72% since IPO. But the rising number of Covid cases scares him off.
$57.760

Stock price when the opinion was issued

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TOP PICK

It is involved in payment processing technology and is one of the competitors to LSPD. It is growing at 30% per year and has a good balance sheet. It has a great niche in the restaurant and hotels business and is starting to expand into gaming and other areas. Has been approached at least twice in the last two years for a potential takeover. The valuation is good at 26X earnings which is pretty low for a tech company. It has just been added to the S&P 400 small cap Index. He considers it undervalued.         Buy 21  Hold 3  Sell 1

(Analysts’ price target is $109.46)
DON'T BUY

The street didn't like their last quarter, and the payments space is crowded (see PayPal).

PAST TOP PICK
(A Top Pick Nov 18/24, Down 16%)

Mid/small caps have been hit in recent months, but he expects the CEO transition to go well and their business remains good. It could be a takeover target.