NEW YORK (TheStreet) -- TheStreet's Jim Cramer said VeriFone (PAY) is one of his favorite companies, and that is why he is watching shares ahead of the technology company's second-quarter earnings release after the Thursday close.
Cramer said VeriFone, which provides technology for electronic payment transactions in the "sweet spot." However, he thinks it's curious VeriFone announced a deal with Visa (V) Wednesday, just one day before reporting earnings. He thought that could also be a sign of other good things to come.
Cramer said it's time to be aggressive on the shares and to buy half now and buy half after the company reports. The new partnership between VeriFone and Visa will allow retailers to offer customers a more secure and more streamlined purchase experience for both digital and face-to-face transactions, he noted. Securely managing these transactions has become critical for retailers as they look to keep customer's personal payment data safe.
For the second quarter analysts are expecting VeriFone to post earnings per share of 42 cents on $489.09 million in revenue. The company has set its second-quarter guidance at 41 cents to 42 cents a share and full-year 2015 guidance at $1.78 to $1.82 a share. The stock has a 50-day moving average of $36.
On Monday, analysts at Raymond James upgraded the stock to outperform from market perform and set a $44 price target. Analysts at SunTrust bumped up their price target to $47 from $43 and gave the company a buy rating. The San Jose, California-based company provides technology for electronic payment transactions. Its system solutions consists of Point-of-Sale electronic payment devices that run its own operating systems and security and encryption software.
TheStreet Ratings team rates VERIFONE SYSTEMS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIFONE SYSTEMS INC (PAY) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
You can view the full analysis from the report here: PAY Ratings Report