Anyone not living under a proverbial rock has heard of — and likely uses — Amazon.com and PayPal. While new issue Kaspi.kz doesn't command such household-name status in the U.S., the Kazakhstan-based player in the payment processing and "buy now, pay later" space is growing rapidly across Central Asia.
In each of the last four quarters, Kaspi has generated at least $1 billion in revenue. Quarterly revenue gains have ranged from 43% to 60% during that period. Earnings growth has come in at 31% to 54%. In the fintech's April 22 report, it generated $2.64 a share in earnings.
That performance has helped Kaspi grab top billing in IBD's Credit Card/Payment Processing industry group with a 97 Composite Rating, trouncing the 69 rating for PayPal. Kaspi even beats Amazon, which holds a 90 Composite Rating, ranking the e-commerce and cloud-computing giant No. 2 in the Retail-Internet group.
Kaspi also pays a dividend, yielding right around 5.5% on an annualized basis.
As Kaspi stock forms a cup base with a 136.17 buy point, it earns a spot on this week's IBD Breakout Stocks Index.
While Amazon and PayPal do not currently appear on any top IBD stock lists, Kaspi lands a spot on the IBD 50 and IPO Leaders screens.
See Who Joins Kaspi On The IBD Breakout Stocks Index
Kaspi Stock Sets Up After Big Run From IPO Base
Soon after its market debut on Jan. 19, Kaspi began forming what became an IPO base. The fintech was featured in this column on Feb. 21, one day after Kaspi stock blasted past that 97.10 buy point into buy range. It shot up 40% in less than two months before a sharp pullback on the week of April 12, just before the Kaspi was set to report on April 22.
Shares of KSPI spent the next few weeks testing — and mostly finding — support at the 10-week moving average in the type of volatility not uncommon for brand-new IPOs.
Now trading well above that benchmark line, Kaspi is on pace to post a fifth straight up week. Also note the recent string of tight weekly closes.
Kaspi stock has set up a first-stage cup pattern with 136.17 buy point. It may still form a handle to offer an earlier entry. Handles take a minimum of five days to form.
On Tuesday, Kaspi spiked as high as 132.88 before retreating. But the stock still closed with a small gain for the day.
Meanwhile, PayPal remains mired in a long and deep multiyear slump.
Amazon stock, on the other hand, is taking aim at a 191.70 entry in a second-stage flat base. A breakout out would mark a record high for the Magnificent Seven stock. Amazon is testing support at its 50-day moving average.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
