Jack Henry & Associates


JKHY

is consistently gaining momentum among customers on the back of its robust fintech solutions.

This is evident from the fact that Jack Henry recently got picked by LINKBANCORP to provide advanced banking services to the latter’s commercial and retail customers.

LINKBANCORP will leverage JKHY’s digital banking and lending capabilities, including the Banno Digital Platform and LoanVantage, to enhance operational efficiencies and offer better banking facilities to customers.

Further, Jack Henry tied up with multiple fintech partners, which will enable LINKBANCORP to connect with more than 850 third-party fintechs.

With LINKBANCORP’s selection, the customer base of Jack Henry naturally strengthened. This is expected to contribute to JKHY’s top-line growth in the upcoming period.

This, in turn, is expected to help Jack Henry win investors’ confidence in the days ahead.

Shares of JKHY have been up 11.4% in the year-to-date period against the

Computer and Technology

sector’s decline of 29.4%.

Growing Customer Base

Apart from the recent partnership, in May2022, Jack Henry announced that Great Plains National Bank is using its BusinessManager solution to help local businesses generate additional revenue sources and survive in the post-pandemic period.

In March, the Bank of Burlington, RockPoint Bank and Moultrie Bank & Trust selected JKHY’s technology platform to expand the accessibility of their financial services in local communities.

In April, Jack Henry and Old Second National Bank expanded their relationship to help the latter execute growth and digital strategies.

In February, JKHY also extended its relationship with Independent Financial. Per the terms of the deal, Independent Financial will leverage Jack Henry’s digital lending platform LoanVantage to automate commercial loans for small and medium-sized businesses.

In January, IncredibleBank selected Jack Henry’s online account opening solution to improve its online account opening procedure.

Portfolio Strength

Jack Henry’s growing momentum among customers is attributed to its efficient and reliable portfolio of financial solutions. Recently, JKHY introduced the Vendor Management Program to its Governance, Risk and Compliance Suite to provide assistance to financial institutions.

Further, Jack Henry introduced SecurePort for banks to help customers access account balances and funds as well as protect the same in times of crisis.

In addition, JKHY added a suite of tools and analytics from Stackfolio to bolster lending capabilities.

Also, Jack Henry Lending launched a powerful digital solution named FactorSoft Web Portal that provides near-real-time servicing to lenders anytime and anywhere.

However, JKHY is currently suffering increasing expenses related to the card processing platform. Further, rising headcounts and personnel costs are hurting its profit margin.

Zacks Rank & Stocks to Consider

Currently, Jack Henry carries a Zacks Rank #4 (Sell).

Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like

Aspen Technology


AZPN

,

Agilent Technologies


A

and

Analog Devices


ADI

. While Aspen technology sports a Zacks Rank #1 (Strong Buy), Agilent Technologies and Analog Devices carry a Zacks Rank #2 (Buy) at present. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Aspen technology has returned 23.5% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.

Analog Devices has lost 15.5% in the year-to-date period. The long-term earnings growth rate for ADI is currently projected at 12.3%.

Agilent Technologies has lost 22.8% in the year-to-date period. The long-term earnings growth rate for A is currently projected at 10%.

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