Nyse Order Imbalance 24358.0 Shares On Sell Side

What Happened?

A number of stocks jumped in the afternoon session after investors grew more optimistic about a potential Federal Reserve interest rate cut in December. 

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Credit Card company Bread Financial jumped 5.3%. Is now the time to buy Bread Financial? Access our full analysis report here, it’s free for active Edge members.
• Auto Loan company Credit Acceptance jumped 4.9%. Is now the time to buy Credit Acceptance? Access our full analysis report here, it’s free for active Edge members.
• Diversified Financial Services company NerdWallet jumped 5.1%. Is now the time to buy NerdWallet? Access our full analysis report here, it’s free for active Edge members.
• Investment Banking & Brokerage company Perella Weinberg jumped 5.6%. Is now the time to buy Perella Weinberg? Access our full analysis report here, it’s free for active Edge members.
• Diversified Financial Services company Donnelley Financial Solutions jumped 4.9%. Is now the time to buy Donnelley Financial Solutions? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Perella Weinberg (PWP)

Perella Weinberg’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 11 days ago when the stock gained 7.9% on the news that the stock's positive momentum continued as investors focused on the company's positive long-term growth prospects, which overshadowed a recent analyst price target reduction and weak quarterly revenue. During a recent earnings call, the company revealed a record pipeline and a record number of active engagements. Management also highlighted that its European business had grown over 50% from the previous year. These positive forward-looking statements seemed to outweigh a report from a few days prior that showed a 41% year-over-year drop in third-quarter revenue. The company also disclosed it had made significant investments in its future, hiring 25 senior bankers and completing the acquisition of Devon Park. Despite an analyst from Keefe, Bruyette & Woods lowering their price target on the stock, the market's reaction suggested investors were more interested in the company's strategic moves aimed at future growth.

Perella Weinberg is down 24.4% since the beginning of the year, and at $17.81 per share, it is trading 32.6% below its 52-week high of $26.41 from January 2025. Investors who bought $1,000 worth of Perella Weinberg’s shares 5 years ago would now be looking at an investment worth $1,755.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how diversified financial services stocks fared in Q3, starting with Paymentus .

Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings.

The 10 diversified financial services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.8% on average since the latest earnings results.

Best Q3: Paymentus

Founded in 2004 to simplify the complex world of bill payments, Paymentus provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Paymentus reported revenues of $310.7 million, up 34.2% year on year. This print exceeded analysts’ expectations by 10.7%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

“Paymentus continued to execute in the third quarter with double-digit year-over-year growth in revenue, contribution profit and adjusted EBITDA, of 34.2%, 22.8% and 45.9%, respectively, driven by strong new implementations and customer demand. Our exceptional bookings year-to-date, along with our considerable backlog, provide us great visibility for the remainder of 2025 and 2026,” said Dushyant Sharma, Founder and CEO.

Paymentus achieved the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 32.2% since reporting and currently trades at $37.73.

Read why we think that Paymentus is one of the best diversified financial services stocks, our full report is free.

NerdWallet

Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.

NerdWallet reported revenues of $215.1 million, up 12.4% year on year, outperforming analysts’ expectations by 11.3%. The business had an exceptional quarter with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

NerdWallet pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 19.1% since reporting. It currently trades at $14.30.

Is now the time to buy NerdWallet? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: NCR Atleos

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

NCR Atleos reported revenues of $1.12 billion, up 4.5% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 5.5% since the results and currently trades at $35.82.

Read our full analysis of NCR Atleos’s results here.

Donnelley Financial Solutions

Born from the need to navigate increasingly complex financial regulations in the digital age, Donnelley Financial Solutions provides software and technology-enabled services that help companies comply with SEC regulations and manage financial transactions and reporting requirements.

Donnelley Financial Solutions reported revenues of $175.3 million, down 2.3% year on year. This print beat analysts’ expectations by 3.3%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Donnelley Financial Solutions had the slowest revenue growth among its peers. The stock is down 9.5% since reporting and currently trades at $46.79.

Read our full, actionable report on Donnelley Financial Solutions here, it’s free for active Edge members.

PayPal

Originally spun off from eBay in 2015 after being acquired by the auction giant in 2002, PayPal operates a global digital payments platform that enables consumers and merchants to send, receive, and process payments online and in person.

PayPal reported revenues of $8.42 billion, up 7.3% year on year. This number surpassed analysts’ expectations by 2.2%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ transaction volumes estimates.

The stock is down 4% since reporting and currently trades at $67.40.

Read our full, actionable report on PayPal here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.