Goldman Sachs sees positive setup for payment stocks ahead of earnings

Goldman Sachs maintains a positive outlook on payment stocks ahead of their third-quarter earnings, highlighting robust spending volumes and improving sector trends. The bank observed sustained consumer spending throughout the quarter, despite investor apprehension about returning to normalcy. September's spending patterns remained strong as the quarter concluded.

Goldman Sachs also noted a decline in regulatory and disruptive risks that previously affected the sector. The emergence of agentic commerce presents a new growth opportunity for carded payments. Payment stocks seem relatively insulated from broader market factors, including rising interest rates, inflation, and AI-driven changes.

The sector currently trades at discounted valuations after years of multiple compression. The investment bank singled out NYSE:V, NYSE:MA, NYSE:TOST, and NYSE:GLBE as stocks to follow in the payments industry. Goldman Sachs expressed a more optimistic view on these stocks compared to others. However, they cautioned on NYSE:FIS, NYSE:FISV, and NYSE:FOUR. This report was AI-assisted and later reviewed by a human editor.