- source
- Spencer Platt/Getty
It’s quite easy to buy bitcoin. But it’s not as straightforward to directly profit from blockchain, the technology that drives the cryptocurrency.
Analysts at HSBC have identified a handful of stocks mostly in the US, Japan, and China that let investors do just that.
Blockchain is basically a decentralized system that ensures everyone has the same information about payments at the same time. It’s an obsession in corners of Wall Street, and central banks from China to Canada have discussed how it could be used.
“Cash usage is falling, accounting for c. 85% of global transactions today, and this is set to accelerate thanks to technology, benefitting customers (convenience), businesses (security) and governments (tax evasion),” HSBC’s equity strategists wrote in a recent note.
“Blockchain is essentially a cashless payment solution, and those companies involved in cashless hardware, software and platform could therefore be set to benefit from a blockchain world.”
The way HSBC screened for the stocks is dead simple: The analysts selected companies in the MSCI’s All Country World Index whose business descriptions had any of the following terms: “mobile payment,” “electronic money,” “internet finance,” and “mobile commerce.”
HSBC’s basket of stocks has gained 119.9% over the past five years, while the MSCI ACWI has risen 51%.
Here’s the list:
“Mobile payment”
PayPal
- source
- Markets Insider
Ticker: PYPL
Country: USA
Industry: Software & Services
Market Cap: $88.4 billion
2018 EPS growth estimate: 20.9%
Worldpay Group
- source
- Markets Insider
Ticker: WPG
Country: United Kingdom
Industry: Software & Services
Market Cap: $11.5 billion
2018 EPS growth estimate: 15.4%
Gemalto
- source
- Markets Insider
Ticker: GTO
Country: Netherlands
Industry: Software & Services
Market Cap: $5.4 billion
2018 EPS growth estimate: 24%
Globe Telecom
- source
- Markets Insider
Ticker: GLO
Country: Philippines
Industry: Telecommunication Services
Market Cap: $5.059 billion
2018 EPS growth estimate: 3.6%
O2 Czech Republic
- source
- Markets Insider
Ticker: TELEC
Country: Czech Republic
Industry: Telecommunication Services
Market Cap: $4.035 billion
2018 EPS growth estimate: -1.4%
“Electronic money”
KDDI
- source
- Markets Insider
Ticker: 9433
Country: Japan
Industry: Telecommunication Services
Market Cap: $64.4 billion
2018 EPS growth estimate: 6.7%
Rakuten
- source
- Markets Insider
Ticker: 4755
Country: Japan
Industry: Retailing
Market Cap: $13.15 billion
2018 EPS growth estimate: -6.2%
Aeon Financial Service
- source
- Markets Insider
Ticker: 8570
Country: Japan
Industry: Diversified Financials
Market Cap: $5.253 billion
2018 EPS growth estimate: 2%
BTS Group Holdings
- source
- Google Finance
Ticker: BTS
Country: Thailand
Industry: Transportation
Market Cap: $3.04 billion
2018 EPS growth estimate: 31.6%
“Internet finance”
Ping An Insurance
- source
- Markets Insider
Ticker: 601318
Country: China
Industry: Insurance
Market Cap: $77.5 billion
2018 EPS growth estimate: 17.9%
Fosun International
- source
- Markets Insider
Ticker: 656
Country: China
Industry: Capital Goods
Market Cap: $19 billion
2018 EPS growth estimate: 14%
“Mobile commerce”
Alibaba
- source
- Markets Insider
Ticker: BABA
Country: China
Industry: Software & Services
Market Cap: $441.62 billion
2018 EPS growth estimate: 29.7%
Bharti Airtel
- source
- Markets Insider
Ticker: BHARTIARTL
Country: India
Industry: Telecommunication Services
Market Cap: $33.06 billion
2018 EPS growth estimate: 93.2%
First Data Corp.
- source
- Markets Insider
Ticker: FDC
Country: USA
Industry: Software & Services
Market Cap: $8.028 billion
2018 EPS growth estimate: 0.7%
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- source
- Business Insider