Flywire is nearing a buy point after volatile action following its latest earnings report. The fintech stock is Tuesday's IBD 50 Stocks To Watch pick.
The global payments and software company serves 3,100 global clients across the education, health care and travel industries, as well business-to-business (B2B) transactions. Flywire covers more than 240 countries and territories and supports over 140 currencies.
The payment functionality includes pay-by-link through a website, email or invoice. A pop-up checkout box allows customers to stay on the business owner's website while paying.
Boston-based Flywire also creates custom invoicing for global customers, reducing wire and merchant fees.
The financial stock ranks ninth out of 40 stocks in the credit card and payment processing group. The group is ranked 64th out of the 197 IBD industries.
Fintech Stock Forms New Base With Buy Point
Although some stocks show buy signals, investors should be cautious about buying. IBD's current outlook is that the market is in a correction.
The fintech stock is forming a new base with 29.41 buy point. Shares reclaimed the 50-day moving average and 21-day exponential moving average after two days below the lines a couple of weeks ago. The outbreak of the banking crisis took shares below both lines.
One positive aspect of the base is that the two weeks of highest volume were up weeks. That's a sign of institutional demand. The relative strength line is bullish too.
FLYW holds a high 94 RS Rating, meaning it outperformed 94% of the stocks in the IBD database.
Analysts Expect A Profit This Year
The payment company posted 42% Q4 sales growth, in line with 40% and 53% growth in the prior two quarters.
Flywire's quarterly losses have been lessening, with the December-quarter posting a loss of 1 cent per share. The company went public May 26, 2021.
"After a significant investment year in 2022 that delivered exceptional results, we feel more confident than ever that we can scale our business efficiently as we head into 2023," said CEO Mike Massaro.
Total payment volume increased 29% over the prior quarter. Fourth-quarter gross margin dipped to 56.8% from 59.7% the prior year's same quarter.
The company projects Q1 sales in the range of $85 million to $91 million, and full-year revenue of $373 million to $392 million.
Analysts are expecting the payment processing company to post 11-cent full-year 2023 EPS, after a 36 cent loss in 2022, then rising 190% to a 31 cent profit in 2024.
More than 350 funds owned FLYW in December, up from 327 in September and 263 in June, showing increasing institutional support.
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