NEW YORK (TheStreet) -- There were a lot of reasons why 2014 should have been a down year for credit-card payment machine maker VeriFone (PAY) , which will report fourth-quarter earnings results Monday after the market close.
With year-to-date stock gains of 23.08%, which beats both the 8.33% gain in the S&P 500 (SPY) and the 4.25% gain in the Dow Jones Industrial Average (DJI) , VeriFone is poised to add to those gains, especially during the busy holiday shopping season. That's one of the busiest periods in retail, according to the National Retail Federation., and VeriFone makes many of the credit card machines used in retail stores.
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This chart shows how uncertain the market has been about VeriFone's prospects. But after the slight dip in early October, the shares have recovered.
While there's still buzz surrounding other mobile payments services -- like Apple's (AAPL) Apple Pay, which uses consumers' iPhones for payments, and eBay's (EBAY) PayPal -- VeriFone's growth prospects haven't been hurt by this shift.
Citing a survey conducted by Prosper Insights & Analytics, the National Retail Federation said that nearly half of holiday shoppers have yet to begun their shopping. And the NRF's consumer spending survey estimates that the average shopper will increase spending by 5% year-over-year (from $767 to $804).
NRF expects sales in November and December (excluding autos, gas and restaurant sales) to climb 4.1% to $616.9 billion, higher than 2013's actual 3.1% increase.
Now is the time to bet on VeriFone, which makes money from these consumer transactions. Since VeriFone has grown both revenue and earnings sequentially for four consecutive quarters, investors should expect this trend to continue.
A few factors are helping VeriFone and should remain growth catalysts into 2015.