Dec. 4 at 8:50 PM
J.P. Morgan highlights 2025 as the worst year for payments stocks in 15 years (excluding the pandemic) but sees potential opportunities heading into 2026. Visa trades near a 10-year valuation low relative to the S&P 500, with strong revenue growth and margins above 50%, while its work on tokenizing payment credentials could be foundational for AI-driven commerce. Toast , recently upgraded to overweight, is down 6% year-to-date despite revenue estimates up 27%, benefiting from modern technology unburdened by legacy systems and a strong brand in the restaurant industry.
Other favorable picks include Corpay for its value proposition in expense management and Block for growth at a reasonable price. Conversely, PayPal and Fiserv were downgraded to neutral due to ongoing structural challenges, slow growth, and the need for operational resets.
$V $TOST $CPAY $XYZ $PYPL