Core Viewpoint - Global Payments reported quarterly earnings of $2.93 per share, exceeding the Zacks Consensus Estimate of $2.91 per share, and showing an increase from $2.62 per share a year ago, indicating a positive earnings surprise of 0.69% [1][2] Financial Performance - The company achieved revenues of $2.32 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.40%, and up from $2.2 billion in the same quarter last year [2] - Over the last four quarters, Global Payments has consistently exceeded consensus EPS and revenue estimates [2] Stock Performance - Global Payments shares have declined approximately 26.8% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.14 on revenues of $2.39 billion, while the estimate for the current fiscal year is $11.63 on revenues of $9.23 billion [7] - The trend of estimate revisions for Global Payments has been unfavorable leading up to the earnings release [6] Industry Context - The Financial Transaction Services industry, to which Global Payments belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Core Viewpoint - Global Payments Inc. (GPN) is expected to report second-quarter 2024 results on August 7, with earnings estimated at $2.91 per share, reflecting an 11.1% increase year-over-year, and revenues projected at $9.2 billion, indicating a 6.4% growth from the previous year [1] Earnings Performance - GPN has consistently beaten consensus earnings estimates in the last four quarters, with an average surprise of 1.1% [2] - The current Earnings ESP for GPN is -0.98%, with the Most Accurate Estimate at $2.88 per share, which is lower than the consensus estimate [3] Zacks Rank and Predictions - GPN currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to higher-ranked stocks [4] Segment Performance - Merchant Solutions, GPN's largest segment, is expected to see a 6.9% increase in adjusted revenues year-over-year, driven by growing transaction volumes and new partnerships [5] - The adjusted operating income for Merchant Solutions is projected to grow by 6.8% according to consensus estimates [6] - Issuer Solutions is also expected to show nearly 6% growth in adjusted revenues, supported by core issuer growth and expanding accounts [7] - Revenue estimates for the Americas and Europe operations indicate year-over-year increases of 3.2% and 4.4%, respectively [8] Cost and Expenses - Increased costs are anticipated to partially offset profits, with adjusted selling, general, and administrative expenses expected to rise over 6% year-over-year [9] - The adjusted cost of service is projected to be around $523 million, with total operating expenses expected to climb 4.4% year-over-year [10] Stock Performance - GPN's stock has declined by 22.7% year-to-date, contrasting with a 4.5% growth in the industry and a 14.5% gain in the S&P 500 [11] - Competitors like Mastercard and Fidelity National Information Services have shown positive stock performance, while GPN's decline reflects investor concerns [11] Market Dynamics - Rising competition from emerging payment firms may impact GPN's pricing and margins, alongside increasing operating expenses despite cost control measures [13] - The decline in share price suggests diminishing investor confidence, with expectations of reduced consumer spending due to declining savings and weak disposable income growth [13]

Wall Street analysts expect Global Payments (GPN) to post quarterly earnings of $2.91 per share in its upcoming report, which indicates a year-over-year increase of 11.1%. Revenues are expected to be $2.31 billion, up 5.1% from the year-ago quarter. Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this tim ...

You must be wondering why we are considering this when the most widely used valuation metric is Price/Earnings (or P/E). Well, an important factor that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company's financial health. Investors are looking to balance AI-driven market gains with cautious optimism surrounding future rate cuts. The Fed's stance on monetary policy remains pivotal as it ...

Due to its solid prospects, this currently Zacks Rank #2 (Buy) stock presents an attractive investment opportunity for investors at the moment. Let's delve deeper & check the positives for the stock. Seven estimates for the 2024 bottom line moved north in the past 60 days versus two southward revisions, reflecting the majority of analysts' confidence in the company. The Zacks Consensus Estimate for GPN's 2024 bottom line of $11.64 per share indicates an 11.7% year-over-year increase. The consensus estimate ...

These are just a few of the metrics contributing to GPN's Value grade of A and MA's Value grade of D. Investors with an interest in Financial Transaction Services stocks have likely encountered both Global Payments (GPN) and MasterCard (MA) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at th ...

It also includes access to the Zacks Style Scores. The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days. Value Score VGM Score The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnin ...

Core Viewpoint - Investors in the Financial Transaction Services sector should consider Global Payments (GPN) and MasterCard (MA) for potential undervalued stock opportunities [1] Group 1: Company Performance - GPN has a Zacks Rank of 2 (Buy), indicating strong earnings estimate revision activity, while MA has a Zacks Rank of 3 (Hold) [3] - GPN's improving analyst outlook suggests it is a more favorable option for value investors compared to MA [4] Group 2: Valuation Metrics - GPN has a forward P/E ratio of 8.40, significantly lower than MA's forward P/E of 31.64, indicating GPN may be undervalued [6] - GPN's PEG ratio is 0.59, while MA's PEG ratio is 1.76, further suggesting GPN's better valuation in terms of expected earnings growth [6] - GPN's P/B ratio is 1.09, contrasting sharply with MA's P/B ratio of 57.39, reinforcing GPN's superior valuation metrics [7] Group 3: Value Grades - GPN has earned a Value grade of A, while MA has received a Value grade of D, highlighting GPN's stronger position in terms of value assessment [7]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks ...

Global Payments (GPN) has been beaten down lately with too much selling pressure. While the stock has lost 10.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator ...