VeriFone Systems Inc (PAY), eBay Inc (EBAY): Should You Buy This Turn Around?

VeriFone’s recent mobile initiatives such as Way2ride and the fact that its mobile platform was selected by French railroad company SNCF are certainly positives. The company states that merchants are interested in its next-gen mobile platforms as well. But VeriFone needs to keep an eye on disruptive players such as eBay Inc (NASDAQ:EBAY).

eBay Inc (NASDAQ:EBAY) recently announced PayPal Beacon, which will “enable consumers to pay at many of their favorite stores completely hands-free.” PayPal Beacon will use a Bluetooth device to connect to consumers’ smartphone that should have a PayPal app on it for Beacon to detect. The control will remain in the hands of the users, who can decide if they want to check into a particular store or want to permit a completely hands-free purchase at certain locations.

Beacon would be able to plug in to point of sales systems compatible with PayPal. But the fact that eBay Inc (NASDAQ:EBAY) has been slowly but steadily making impressive moves, including PayPal Here, is proof of the company’s technological prowess.

The bottom line
The recent quarterly report gave VeriFone investors a lot to cheer about. The company paid down $160 million of its debt, boosted R&D spending, and landed some big contracts. It looks like VeriFone is making a good effort to turn its business around, and at a forward P/E of 15, it might prove to be a good buy if the rebound continues.

The article Should You Buy This Turn Around? originally appeared on Fool.com and is written by Harsh Chauhan.

Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends eBay. The Motley Fool owns shares of eBay. 

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