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Global Payments (GPN) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Global Payments (GPN) closed at $190.44 in the latest trading session, marking a -0.49% move from the prior day. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.27%.

Heading into today, shares of the electronics payment processing company had gained 9.31% over the past month, outpacing the Business Services sector's gain of 2.86% and the S&P 500's gain of 4.56% in that time.

Wall Street will be looking for positivity from GPN as it approaches its next earnings report date. On that day, GPN is projected to report earnings of $1.59 per share, which would represent year-over-year growth of 19.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, up 163.58% from the year-ago period.

Any recent changes to analyst estimates for GPN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. GPN is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, GPN is holding a Forward P/E ratio of 25.31. This valuation marks a premium compared to its industry's average Forward P/E of 22.06.

It is also worth noting that GPN currently has a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPN's industry had an average PEG ratio of 1.72 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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