WEX - Baird previews business process outsourcing picks heading into conference

Baird is hosting several players in business process outsourcing at its Global Consumer, Tech and Services conference this week - and one thing they have in common is underperforming the market in 2021. As a group, the companies have lagged the S&P 500 by 4% to 15%, which Baird's David Koning and team attribute to an investor preference for cyclical recovery stocks that are pulling off beat-and-raises with earnings. "While the payments stocks have shown nice recovery patterns, results have been mostly in line with expectations," the firm says, "and the stocks will likely work really well again when investors want nice stable 15-20% EPS growth when the S&P earnings return to more normalized growth in the mid/high single digits." Among the themes it's hoping to hit with the business process outsourcing companies, one covers the payment-focused trio of Fiserv (FISV), Fidelity National Information Services (FIS), and Jack Henry &

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Baird previews business process outsourcing picks heading into conference