Financial Technology

Financial Stocks Show Growth Spurts: SCHW, AMBC, IMXI and FOUR On IBD 50

Financial stocks International Money Express (IMXI), Charles Schwab (SCHW),  Shift4 Payments (FOUR) and Ambac Financial (AMBC) joined the elite IBD 50 leadership list. Their unexpected appearance predicts bullish returns for the group in the first quarter of 2023.


The IBD 50 growth stock list identifies top performers that have displayed fundamental and technical strength in recent quarters. Their superior price performance shows resilience in this challenging bear market. Financial stocks, in particular, have gained pace in recent sessions and now show the typical traits of bullish growth plays. While some may offer entry from bases right now, others will need more time to set up profitable positions.

Financial stock International Money Express holds a highly-respectable 93 Composite Rating and a 92 Relative Strength Rating. Shares are building a cup base with a buy point of 27.91.

IMXI stock ranks third in the Financial Services-Specialty group, which holds a midrange 91st place among IBD’s 197 industry groups. The Miami-based firm provides financial technology to enable digital payments from the United States and Canada, to Latin America, Africa and Asia. Q3 sales of $140.8 million marked 17% growth while earnings of 54 cents per share showed a robust 35% year-over-year increase.

Financial Stocks: Schwab In Buy Zone

Leading brokerage and financial stock Schwab is in a buy zone from a cup-with-handle base and buy point of 81.18.

The 87 Relative Strength Rating lags the nearly-perfect 97 Composite Rating, but the top-notch EPS rating of 94 highlights superior earnings growth. In the third quarter, sales grew 26% year over year to $5.9 billion while earnings surged 31% to $1.10 per share. Schwab ranks third in the Finance-Investment Bank/Brokers industry group, which holds a lofty 24th place among IBD’s 197 industry groups.

Shares of Shift4 Payments surged on strong volume Thursday and are now extended beyond the buy zone.

In November, the financial stock broke out of a consolidation with a buy point of 51.52. The 95 Composite Rating and 93 Relative Strength Rating confirm the bullish price action. Third quarter sales of $547.3 million grew 45% from the previous year while earnings of 44 cents grew 69%.

The Allentown, Pa. company provides payment processing tools, holding second place in the Finance-Credit Card/Payment Processing industry group. The group holds a mediocre 115th place in IBD industry groups.

Ambac Rises After Acquiring Key Stakes

Financial stock Ambac is extended from a buy point of 15.69. Shares broke out of a consolidation in strong volume in November.

AMBC stock has stellar 97 scores for both Composite and Relative Strength Ratings and holds first place in the Financial Services-Specialty group.

For the September quarter, sales of $80 million grew 57% while earnings of $7.37 per share showed a whopping 999% increase.

New York-based Ambac provides specialty casualty and property insurance services. In November, it acquired major stakes in All Trans Risk Solutions, a commercial auto insurance provider, and Capacity Marine Corporation, which specializes in brokerage  and reinsurance products for marine and international risk.

Please follow VRamakrishnan on Twitter at @IBD_VRamakrishnan for understanding growth stocks.


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