PAY Chart PAY data by YCharts

VeriFone Systems (PAY)

52-Week High: $55.89

52-Week Low: $30.10

Book Value: $11.54

Price-To-Book: 2.88

VeriFone is anticipated to report better third-quarter earnings after the market closes on Sept. 5, 2012. The consensus estimate is currently 62 cents a share, an improvement of 22 cents (35.5%) from 40 cents during the same period last year.

Eight of the 13 analysts covering the company give a buy recommendation. The average analyst target price for PAY is $46.27.

The trailing 12-month price-to-earnings ratio is 18.4, the mean fiscal-year estimate price-to-earnings ratio is 14.9, based on earnings of $2.32 per share this year.

The current proportion sold short based on the float is an uncomfortable 9.4%. That's a considerable amount of smart money betting VeriFone faces more downside pressure. If shorts are wrong, VeriFone is a short-squeeze candidate.

Background: VeriFone is a global leader in secure electronic payment technologies. VeriFone delivers solutions that add value to the point of sale. VeriFone is specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and health care. VeriFone trades a recent average of 2.9 million shares per day with a marketcap of $3.7 billion.

PAY Earnings Per Share Chart PAY Earnings Per Share data by YCharts

I use,,, Tradestation, and Reuters for my data. PE is generally adjusted PE based on an average number of shares.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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