
NYSE:GPN
This summary was created by AI, based on 2 opinions in the last 12 months.
Global Payments Inc. (GPN-N) has recently seen some fluctuations, with a notable drop of 13.7% from its previous top pick status, prompting a recommendation to cover positions at $67. Despite these challenges, the company reported earnings that met expectations, signaling stability. Analysts project a 13-15% increase in EPS by 2026, suggesting positive growth potential. The stock is currently trading under book value at a price-to-earnings (P/E) ratio of 13, indicating that it may be undervalued. With steady operating cash reserves and a share buyback program in place, there remains an upside potential of 29%, aiming for a target price around $101. The current yield stands at 1.3%, reflecting a stable return for investors.
The sell-off in the share price recently is due to a few reasons:
In 2022, the company did record an impairment of goodwill of their previous acquisition, which the market perceives as an overpayment for their previous acquisition, leading to questionable capital allocation skills of management. Debt also increased with acquisitions, and is now about 5X cash flow, fairly high for the current environment.
Recessions could affect consumers’ purchases, which affects GPN’s business. Also, amid the banking crisis recently, companies related to the Financial sector are under pressure.
The good news is that there is some insider purchases at these prices in the last few months, and the company also repurchased shares quite significantly in 2022, indicating management believes shares are quite undervalued. Payments and card processing is a high-quality business with high ROEs and predictable growth. We think GPN will do OK going forward, although investors also need to be mindful of their acquisitions strategies. Its decline is not really out of line vs other companies over the past year, and it is well priced at 9.6X earnings.
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Global Payments Inc. is a American stock, trading under the symbol GPN (previously GPN-N on Stockchase) on the New York Stock Exchange (GPN). It is usually referred to as NYSE:GPN or GPN
In the last year, 2 stock analysts issued a Buy, Sell, or Hold rating on GPN (previously GPN-N on Stockchase). 2 analysts recommended to BUY and 0 analysts recommended to SELL the stock. The latest stock analyst rating is PAST TOP PICK. Read the latest stock experts' ratings for Global Payments Inc. .
Global Payments Inc. was recommended as a Top Pick by The Panic-Proof Portfolio (Stockchase Research) on 2026-04-02. Read the latest stock experts ratings for Global Payments Inc. .
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for Global Payments Inc. .
Global Payments Inc. is followed by 19 investors on Stockchase and is a trending stock that is worth watching.
On 2026-09-02, Global Payments Inc. (GPN) stock closed at a price of $92.81.
Our PAST TOP PICK with GPN has triggered its stop at $67. To remain disciplined, we recommend covering the position at this time.