JKHY - Jack Henry & Associates: Compounding In The Fintech Niche

2024-02-03 23:23:16 ET

Summary

• Jack Henry & Associates is a pivotal but undervalued stock in the fin-tech sector that supports small banks through specialized software solutions.
• The company has undergone a management change, promoting seasoned insider Greg Adelson to the role of CEO and President.
• The financial markets have adapted well to elevated interest rates, creating a favorable environment for Jack Henry's software suite and potential growth.

Introduction

In a prior article , I established coverage of Jack Henry ( JKHY ), a vertical software company serving the small bank niche. I suggested it was a pivotal but undervalued stock in the fin-tech sector that supports small banks through specialized software solutions, which helped them compete against much larger peers.

I claimed that despite its significant role in leveling the playing field for smaller banks against more prominent institutions, the company had been overshadowed in the market, particularly amid last year's banking crisis, which negatively impacted its core customer base....

For further details see: