Here's Why Global Payments (GPN) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Global Payments (GPN)
Global Payments is headquartered in Atlanta, GA. The company was incorporated in Georgia as Global Payments Inc. in 2000 and spun-off from its former parent company in 2001. Including its time as part of its former parent company, it has been in the payment technology services business since 1967. Since its spin-off, the company has expanded in existing markets and into new markets internationally by pursuing further acquisitions and joint ventures.
GPN sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Financial Transaction Services industry's P/E of 13.6X, shares of Global Payments are trading at a forward P/E of 11.9X. GPN also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 7.9X, and a Price/Sales ratio of 3.5X.
A company's earnings performance is important for value investors as well. For fiscal 2023, nine analysts revised their earnings estimate higher in the last 60 days for GPN, while the Zacks Consensus Estimate has increased $0.03 to $10.40 per share. GPN also holds an average earnings surprise of 1.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding GPN to their portfolios.
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Global Payments Inc. (GPN) : Free Stock Analysis Report
