TBK - Don't Let Triumph Bancorp's Short-Term Issues Distract You From the Long-Term Opportunity
Triumph Bancorp (NASDAQ: TBK) , a niche bank that caters heavily to the trucking and factoring industries, recently reported earnings results for the fourth quarter of 2021 that fell short of estimates. Management also discussed some issues that might hold the business back this year. The stock had been sliding already, and at Friday's close, it was down 26% year to date.
But I would caution investors not to worry too much about the short-term challenges here. Triumph is building a fully integrated payments network called TriumphPay that could revolutionize the way payments flow through the trucking ecosystem; management has said it could be worth hundreds of millions of dollars. Let's take a look.
TriumphPay is built to support the trucking industry: the carriers and the shippers; the freight brokers that help connect them; and the factoring companies, which purchase trucker invoices in advance to provide carriers with immediate liquidity. TriumphPay makes all these parties more efficient by streamlining all the manual work and paperwork involved in the process, by helping with auditing, and -- eventually -- by automating the entire process from start to finish.
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Don't Let Triumph Bancorp's Short-Term Issues Distract You From the Long-Term Opportunity