A recent report by Goldman Sachs has revealed a startling statistic: business-to-business payments total a whopping $127 trillion every year. Yet the process is still extremely inefficient, with paperwork and admin costs weighing on resources.
That’s why Goldman Sachs believes there’s $1 trillion in revenue up for grabs for companies that can 1) digitize and 2) cheapen this B2B payment process. The firm singles out a few stocks that are leading the way in this ongoing payment revolution.
1. Fleetcor Technologies (FLT)
Fleetcor is one of the 250 fastest growing companies in the world according to Forbes. It specializes in providing fuel cards and workforce payment products and services.
GS Comment: “While most providers focus on either domestic or cross-border payments, FleetCor offers both domestic and international payments solutions. This gives FleetCor a unique opportunity to cross-sell its domestic Comdata and cross-border Cambridge products across its client base.” See what other Top Analysts are saying about FLT.
2. Mastercard (MA)
This multinational financial services corp has just been upgraded by Goldman Sachs from Buy to Conviction Buy. This comes with a new price target of $260 up from $230 previously.
GS Comment: “Although Mastercard ranks third in terms of commercial card volume, we think Mastercard has the most comprehensive portfolio of B2B payment products across the card networks with virtual cards, Fast ACH, and Mastercard Send.” See what other Top Analysts are saying about MA.
3. Wex (WEX)
Wex says it is ‘Powered by the belief that complex payment systems can be made simple.’ The company offers corporate card payment solutions through three segments: Fleet; Travel and Corporate Solutions; and Health and Employee Benefits. Bear in mind, if we look at the consensus from only top analysts, it shifts from Moderate to Strong Buy.
