With a market cap of $23.9 billion, Global Payments Inc. (GPN) is a leading provider of payment technology and software solutions worldwide. The company operates primarily through its Merchant Solutions and Issuer Solutions segments, offering businesses and financial institutions secure, seamless, and innovative payment processing and software services.
Companies valued over $10 billion are generally described as “large-cap” stocks, and Global Payments fits right into that category. With a global presence across the Americas, Europe, and Asia-Pacific, Global Payments continues to expand through strategic acquisitions, joint ventures, and advanced financial technology solutions.
Shares of the Atlanta, Georgia-based company have fallen 6.9% from its 52-week high of $95.88. Global Payments’ shares have soared 33.9% over the past three months, exceeding the iShares U.S. Industrials ETF’s (IYJ) 1.5% decline over the same time frame.
GPN stock is up 16.7% on a YTD basis, outperforming IYJ’s 5.8% gain. However, shares of the company have risen 7.4% over the past 52 weeks, slightly lagging behind IYJ’s 8.4% return over the same time frame.
Yet, the stock has been trading above its 50-day and 200-day moving averages since July.
Global Payments has outperformed on a YTD basis as the integration of Worldpay, strong Genius platform adoption, and growing digital and embedded payments volumes have strengthened its growth outlook. Improving sales-force productivity, cross-selling opportunities, cost synergies, and expectations for stronger free cash flow have increased confidence in earnings and margin expansion.
In comparison, rival Copart, Inc. (CPRT) has lagged behind GPN stock. CPRT stock has decreased 20.2% on a YTD basis and 34.3% over the past 52 weeks.
Despite the stock’s outperformance relative to its peers, analysts remain cautiously optimistic on GPN. It has a consensus rating of “Moderate Buy” from the 35 analysts in coverage, and the mean price target of $103.27 is a premium of 15.4% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.