/Global%20Payments%2C%20Inc_%20office%20in%20Canada-by%20JHVEPhoto%20via%20Shutterstock.jpg)
Valued at $28.2 billion by market cap, Global Payments Inc. (GPN) operates in the payment technology services sector. The Atlanta, Georgia-based company provides a comprehensive range of payment and software solutions across its Merchant Solutions and Issuer Solutions segments, serving clients globally.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Global Payments fits this criterion perfectly. Global Payments is renowned for its comprehensive and integrated payment solutions, including its advanced technology for handling card, check, and digital payments across a global network.
The fintech firm has fallen 22.1% from its 52-week high of $141.77. Global Payments' shares have increased 17.9% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) marginal gain during the same period.
However, in the longer term, GPN stock has declined 13% on a YTD basis, which lags behind NASX's 17.8% rise over the same period. Moreover, GPN has dropped 12.2% over the past 52 weeks, compared to NASX's 28% gains.
GPN has been trading below its 200-day moving average since May but has remained above its 50-day moving average since August.
Global Payments has underperformed over the past year due to market pessimism and integration issues with the EVO Payments acquisition, coupled with a high debt burden and slower revenue growth amid macroeconomic challenges such as high interest rates and inflation. However, the stock surged 6.9% on Aug. 7 after the company reported stronger-than-expected Q2 results, with adjusted EPS of $2.93 and adjusted revenue of $2.3 billion. This positive earnings report, coupled with resilient consumer spending despite economic slowdown fears, boosted investor confidence.
Nevertheless, rival Paychex, Inc. (PAYX) is outperforming GPN. Paychex shares have gained 13.2% over the past 52 weeks and 13.4% on a YTD basis.
Despite the underperformance over the past year, analysts remain moderately bullish about GPN's prospects. Among the 33 analysts covering the stock, the consensus is “Moderate Buy,” and the mean price target of $138.62 is a premium of 25.5% 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.
