Goldman Sachs sees positive setup for payment stocks ahead of earnings

Investing.com -- Goldman Sachs said it holds a positive view on payment stocks heading into third-quarter earnings, citing strong spending volumes and favorable structural trends.

Spending volumes remained strong throughout the quarter and defied investor concerns about normalization, the bank said. September spending trends stayed robust through the end of the quarter.

Broader structural concerns affecting the sector have improved, with several regulatory and disruptive risks declining, Goldman Sachs noted. Agentic commerce has emerged as a complementary growth driver for carded payments.

The bank said payment stocks appear relatively protected from broader market concerns, including higher interest rates, higher inflation, and AI-driven disruption. The sector trades at low valuations compared to historical levels after several years of multiple compression.

Goldman Sachs highlighted NYSE:V, NYSE:MA, NYSE:TOST, and NYSE:GLBE as stocks to watch in the payments sector. The bank said it holds a more constructive view on NYSE:V, NYSE:MA, NASDAQ:PYPL, NYSE:GLBE, and NASDAQ:RSKD heading into earnings.

The bank expressed a more cautious stance on NYSE:FIS, NYSE:FISV, and NYSE:FOUR.

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