Valued at a market cap of $19 billion, Global Payments Inc. (GPN) provides payment technology and software solutions for card, check, and digital-based payments. The Atlanta, Georgia-based company offers a comprehensive suite of products and services that include point-of-sale (POS) systems, integrated payment processing, and digital wallet capabilities, alongside sophisticated merchant acquiring and issuing services.
This tech company has underperformed the broader market over the past 52 weeks. Shares of GPN have declined 13.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.6%. Moreover, on a YTD basis, the stock is down 10.6%, compared to SPX’s 8.1% rise.
Focusing more closely, GPN has outperformed the industry-focused Amplify Digital Payments ETF’s (IPAY) 14.8% decline over the past 52 weeks. Meanwhile, it has aligned with IPAY’s 10.5% YTD drop.
On May 6, shares of GPN closed up marginally after its better-than-expected Q1 earnings release. The company’s adjusted net revenue increased 29.5% year-over-year to $2.9 billion, topping analyst expectations by 1.4%. Moreover, its adjusted EPS increased 10% from the year-ago quarter to $2.96, handily exceeding consensus estimates of $2.82.
For the current fiscal year, ending in December, analysts expect GPN’s EPS to grow 13.3% year over year to $13.85. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 33 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 11 “Strong Buy,” 20 “Hold,” and two “Strong Sell” ratings.
The configuration is slightly less bullish than a month ago, with 12 analysts suggesting a "Strong Buy” rating.
On May 7, Stephens analyst Charles Nabhan maintained an “Equal Weight” on GPN but lowered its price target to $80, indicating a 15.6% potential upside from the current levels.
The mean price target of $95.88 suggests a 38.6% premium to its current price levels, while its Street-high price target of $194 implies a 180.4% potential upside.
On the date of publication, Neharika Jain 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.
More news from Barchart
- Ahead of Plug Power Earnings, Here Is What Barchart Options Data Shows for PLUG Stock
- GameStop’s Bid for eBay Isn’t Going Anywhere. Another Buyer Could Swoop In
- Here's How Nvidia Is Quietly Carrying the Entire S&P 500 Rally to Record Highs
- Datadog Stock Is the Latest to Disprove SaaS-Apocalypse Panic. Why Wall Street Loves DDOG Here.
