Covering just over 1 million square miles, Kazakhstan is the ninth-largest country in the world. And it's home to Kaspi, a 2024 fintech IPO that just reached over $1 billion in quarterly revenue in its most recent report. And the stock has just soared into buy range.
Kaspi joins household fintech name American Express on the IBD Breakout Stocks Index. Other companies on that index hailing from the broad financial sector include Interactive Brokers, KKR, Palmer Square Capital and Brookfield Asset Management.
Updated weekly, the IBD Breakout Opportunities ETF enables investors to have a stake in all the names on the BOUT ETF with a single trade.
The ETF continues to test its buy zone after breaking out from a cup with handle earlier this month.
See Who Joins Kaspi, AmEx On The IBD Breakout Stocks Index
Another Kazakhstan IPO Stock To Watch
As Kaspi sets up a potential breakout from an IPO base, fellow Kazahkstan-based firm Freedom Holding continues to trade mostly sideways after a big run-up following its 2019 IPO.
Shares of Freedom, a brokerage and financial services firm, soared more than 677% from the first week of its IPO until reaching an all-time high last September.
FRHC stock has so far failed to reclaim its 50-day line.
Kaspi Conquering Kazahkstan; Earnings On Deck
Powered by its consumer-focused ecosystem, Kaspi claims the title of being the largest payments, marketplace and fintech firm in Kazahkstan. The company aims to transform how people shop and pay for goods as well as manage their personal finances.
Kaspi has already established an impressive track record of earnings and sales growth. Over the last six quarters, revenue growth has ranged from 20% to 67%. In the third quarter, the payments and fintech firm generated roughly $1.1 billion in sales.
Over the last five quarters, earnings growth has come in between 40% and 75%. In Q3, Kaspi posted earnings per share of $2.56, a 40% year-over-year increase.
The company reports Q4 and full-year 2023 earnings next Monday, Feb. 26. Consensus analyst estimates call for 40% EPS growth to $9.38 per share in 2023. For this year, Wall Street expects a 22% gain to $11.45 a share.
Kaspi Among The Top Dividend Stocks To Watch
Boosted by strong growth and the highest-possible 99 EPS Rating, Kaspi stands among the best dividend stocks to watch, currently yielding 6.4% on an annualized basis.
That dwarfs the yields from industry peers American Express (1.1%), Visa (0.8%) and Mastercard (0.6%).
Kaspi earns an overall Composite Rating of 92, meaning it's outpacing 92% of all stocks in terms of key stock-picking factors. AmEx earns a 98 Composite Rating, edging out industry peers Mastercard (97) and Visa stock (95).
Kazakhstan Stock Near Buy Point In IPO Base
While Kaspi has not traded long enough to establish a 50-day moving average, the fintech stock has crafted an IPO base showing a 95.97 buy point.
On Tuesday, Kaspi blasted higher after heading lower in the morning. The IPO and dividend leader shot up nearly 5% to close at 100.31, right around the very top of its buy range. The buy zone extends to 100.71, 5% above the initial entry.
The relative strength line soared sharply higher on the move.
On Wednesday, Kaspi showed resilience, holding the bulk of yesterday's big gains. It closed just shy of 100.
Because it's a very young IPO with earnings due in less than a week, investors should proceed with caution.
But having already established a track record of strong growth and some enticing technical action in its stock chart, Kaspi earns a spot on investors' radar as one of the top IPO and dividend stocks to watch.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
