Payment stocks with `recession resistance' may outperform in 2019: RBC

|By:, SA News Editor

Payment stocks that offer "relative recession resistance" or special situations may outperform the broader market in 2019, writes RBC analyst Daniel Perlin in a note.

Upgrades NCR (NYSE:NCR) to top pick; cuts Worldpay (NYSE:WP) to outperform from top pick.

Payments, processing, IT services stock outperformance during 2018, as EPS growth more than offset multiple contraction, may continue in 2019, Perlin writes.

Other picks: Visa (NYSE:V), which offers best "line of sight" on Europe growth plan and Visa Direct, B2B to drive volume; sees PayPal (NASDAQ:PYPL) as an under-monetized asset, Total Systems (NYSE:TSS).

Visa +1.0%, PayPal +1.1%, Worldpay +0.1% premarket.

Source: Bloomberg First Word.

ETFs: IPAY, FINX

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