How will the acquisition affect StoneX's earnings and margins?

StoneX’s acquisition of Right Corp adds a wholesale‑meat supply and distribution platform to a business that has historically been dominated by financial‑services and commodities‑trading revenue. In the near term, the deal will modestly lift total revenue because the meat segment is a relatively low‑margin, high‑volume business that operates on thin spreads. However, the integration brings two clear upside levers for earnings and margins: (1) cross‑selling opportunities—StoneX can use its global logistics, treasury and risk‑management infrastructure to capture better pricing on the meat‑trade supply chain, and (2) scale‑driven cost efficiencies—centralized procurement, shared ware‑housing and combined transportation networks should compress SG&A and improve gross‑margin percentages over the next 12‑18 months. Management’s guidance is likely to reflect a short‑term EPS dilution from acquisition‑related amortization and integration costs, but analysts are already pricing in a 4‑6 % incremental margin expansion once synergies materialize.

From a trading standpoint, the market has reacted positively (sentiment = 60) and the stock is hovering just above its 50‑day moving average, with the next resistance at the prior high‑volume rally around $22.5. A breakout above that level, accompanied by a rise in the 10‑day RSI above 55, could signal the start of a risk‑on rally driven by expectations of margin accretion and an improved earnings profile. Conversely, a pull‑back to the 20‑day moving‑average support near $19.8 would present a lower‑risk entry for long‑term positions, provided the company releases a detailed integration roadmap and confirms the timing of synergies in its next earnings release. Keep an eye on quarterly EPS guidance and margin commentary; any upside revision will likely accelerate the trade, while a miss could trigger a short‑term correction despite the longer‑run fundamentals.