Total System Services (TSS) signed a deal to acquire payment technology company, Cayan.
Total System’s strategic move has impressed investors. The deal accelerates the company’s position as a leading technology payments provider to small and medium size businesses in the United States.
Also, TSS recently extended its long-term agreement with Capital One Financial Corp. Total System Services will continue to provide processing services for the company’s North American consumer and commercial credit card accounts.
Zacks believes that the company to retain its revenue momentum in the coming quarters. They have on the back of a strong market position. In addition, they have attractive core business that continue to be driven by new deals, renewed agreements, accretive acquisitions and expansion of service offerings.
In addition, Total System recently completed deleveraging commitments. They resumed share buyback activity which should support the stock.
The above-mentioned factors suggest that this Zacks Rank #2 (Buy) stock has further upside potential.