Global Payments Inc. (NYSE:GPN) is one of the best affordable long term stocks to buy according to hedge funds. On January 27, Cantor Fitzgerald started covering Global Payments Inc. (NYSE:GPN) with a Neutral rating and set a price target of $80. The firm pointed out that Global Payments has changed a lot recently, becoming a “pure-play merchant acquirer” after buying Worldpay and selling its Issuer Solutions business to FIS. Global Payments (GPN) Draws Mixed Analyst Views Following Worldpay Deal and Stra ...

Core Insights - Global Payments Inc. (GPN) is valued at a market cap of $17.6 billion and is a leading provider of payment technology and software solutions [1] - The company has significantly underperformed the broader market, with stock prices declining 35.7% over the past 52 weeks and 8.5% in 2026, compared to the S&P 500 Index's 14% gains [2] - GPN has also lagged behind the Amplify Digital Payments ETF's 22.7% decline over the past year [3] Company Developments - On January 12, Global Payments completed its acquisition of Worldpay from FIS and GTCR, while divesting its Issuer Solutions business to FIS, transforming into a pure-play commerce solutions provider [6] - This acquisition creates a platform serving over 6 million merchant locations, processing $3.7 trillion in payments and approximately 94 billion transactions annually across more than 175 countries [6] Financial Performance - For FY2025, analysts expect GPN to deliver an adjusted EPS of $11.72, reflecting a 6.1% year-over-year increase [7] - The company has a strong earnings surprise history, surpassing bottom-line estimates in each of the past four quarters [7] - Among 32 analysts covering the stock, the consensus rating is a "Moderate Buy," with 11 "Strong Buys," one "Moderate Buy," 18 "Holds," and two "Strong Sells" [7] Analyst Coverage - Cantor Fitzgerald initiated coverage on Global Payments with a "Neutral" rating and an $80 price target, noting the company's transformation into a pure-play merchant acquirer [9] - The firm emphasized GPN's "divest and refresh" strategy, which has driven 22.33% revenue growth over the past year [9]

Industry Overview - Mobile payments are increasingly replacing physical wallets, enhancing transaction speed and efficiency in the global economy [2][3] - The global mobile payments market reached $4.97 trillion in 2025 and is projected to grow to $46.62 trillion by 2034, reflecting a 28% compound annual growth rate [4] Technological Advancements - The rise of smartphone penetration, wearables, and fintech innovations are driving mobile payment adoption, particularly among Gen Z and Millennials [3] - Technologies such as AI and blockchain are improving fraud prevention and transaction reliability [3] Market Dynamics - E-commerce growth and improved digital infrastructure are reinforcing mobile payment momentum, benefiting small businesses by enhancing cash flow and financial visibility [5] - Competition is intensifying among companies like Nu Holdings, Global Payments, and Remitly, which are forming deeper partnerships to scale their operations [6] Company Insights: Nu Holdings - Nu Holdings offers mobile payment capabilities through its Nubank platform, integrating payments into a single app-based ecosystem [8] - The company serves over 127 million customers globally, with a strong engagement rate of over 83% [9] - Nu Holdings is strategically applying for a U.S. national bank charter to access a larger digital payments market [10] Company Insights: Global Payments - Global Payments is a leading provider of payment technology, enabling mobile and digital wallet transactions across various channels [11] - The company generates revenue primarily through transaction-based fees, benefiting from the rise in mobile payment adoption [13] Company Insights: Remitly Global - Remitly operates a mobile-first platform focused on international remittances, facilitating seamless cross-border payments [14] - The company reported 8.9 million active customers and a 35% year-over-year increase in total send volume to $19.5 billion [16] - Remitly is expanding its partnerships to enhance geographic coverage and accelerate settlement times [17]

Group 1 - Global Payments Inc. (GPN) is identified as a leading online and POS payment platform, with the stock previously considered undervalued at $103.25 due to a low P/E ratio [1] - The investment strategy combines fundamental analysis with options trading, focusing on various strategies including income-oriented investments, growth at a reasonable price, deep value, and dividend aristocrats [1] - The analyst employs 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2 - The analyst has a beneficial long position in GPN shares through stock ownership, options, or other derivatives, indicating a personal investment interest in the company [2]

Group 1 - Global Payments Inc. (GPN) is identified as a leading online and POS payment platform, with the stock previously seen as undervalued at $103.25, particularly due to a low P/E ratio [1] - The investment strategy combines fundamental analysis with options trading, focusing on various strategies including income-oriented investments, growth at a reasonable price, deep value, and dividend aristocrats [1] - The analyst employs 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2 - The analyst has a beneficial long position in GPN shares through stock ownership, options, or other derivatives, indicating a personal investment interest in the company [2]

Core Viewpoint - The article highlights Global Payments (GPN) as a strong growth stock, supported by its favorable Growth Score and Zacks Rank, indicating solid investment potential for growth investors [2][10]. Earnings Growth - Global Payments has a historical EPS growth rate of 14.2%, with projected EPS growth of 13.3% for the current year, surpassing the industry average of 13% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 8%, which is above the industry average of 6%. Additionally, its annualized cash flow growth rate over the past 3-5 years is 17.9%, compared to the industry average of 13.4% [6][7]. Earnings Estimate Revisions - The current-year earnings estimates for Global Payments have been revised upward, with the Zacks Consensus Estimate increasing by 0.4% over the past month, indicating a positive trend in earnings estimate revisions [8]. Overall Positioning - Global Payments has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the market, making it an attractive option for growth investors [10].

Market Overview - The U.S. stock market showed subdued performance, with the Dow Jones Industrial Average increasing by 0.11% to 49,071.56, while the S&P 500 decreased by 0.13% to 6,969.01, and the Nasdaq Composite fell by 0.72% to 23,685.12 [1] - The technology sector experienced a significant sell-off, particularly in Microsoft Corporation (MSFT) shares, due to concerns over slower cloud growth, although Meta provided some offsetting strength [2] Value Stocks Analysis - Value stocks are highlighted as appealing investment opportunities amid cautious market sentiment, driven by rising oil prices and geopolitical tensions [2] - The Price to Cash Flow (P/CF) ratio is emphasized as an effective valuation metric, indicating that a lower P/CF ratio suggests better value and strong cash generation potential [3][4] - Analysts note that cash flow is a more reliable indicator of a company's financial health compared to earnings, which can be influenced by accounting estimates and management manipulation [5] Investment Strategy - A comprehensive investment strategy should include multiple valuation metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside a favorable Zacks Rank and Value Score [7] - Parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and an average 20-day trading volume greater than 100,000 [8] Selected Value Stocks - Four companies—Harmony Biosciences Holdings, Inc. (HRMY), Universal Health Services, Inc. (UHS), Concentrix Corporation (CNXC), and Global Payments Inc. (GPN)—meet strict value criteria, showing low P/CF ratios and solid financial health [9] - Each of these companies is projected to grow both sales and earnings per share (EPS) in the current financial year, with all carrying a Value Score of A and demonstrating consistent positive earnings surprises [9] Company-Specific Insights - Harmony Biosciences is projected to see sales growth of 21.4% and EPS growth of 25.9% for the current financial year, despite a 4.9% decline in share price over the past year [13] - Universal Health Services anticipates sales growth of 9.7% and EPS growth of 31.3%, with shares rising by 6.1% in the past year [14] - Concentrix Corporation expects sales growth of 2.9% and EPS growth of 4.8%, although its shares have dropped by 26.1% in the past year [15] - Global Payments forecasts sales growth of 1.8% and EPS growth of 5.8%, with shares declining by 36.8% over the past year [16]

Group 1: Greenlight Capital Overview - Greenlight Capital's investment strategy focuses on a bottom-up portfolio of undervalued long positions and overvalued short positions, along with a macro book for risk hedging [1] - The Partnership achieved a net return of 9.0% in 2025, compared to 17.9% for the S&P 500 index, and an 8.5% return in Q4 against 2.7% for the index [1] - Since its inception in May 1996, the Partnership has returned $6.1 billion net of fees and expenses to its investors [1] Group 2: Global Payments Inc. (GPN) Investment Insights - Global Payments Inc. (NYSE:GPN) is a payment technology provider, recently added to Greenlight Capital's portfolio [2] - The stock experienced a one-month return of -6.96% and a 52-week decline of 36.22%, closing at $72.01 on January 28, 2026, with a market capitalization of $20.16 billion [2] - Greenlight Capital re-acquired shares of GPN at an average price of $77.85 after previously exiting the position at $108.61 [3] - GPN is targeting $5 billion in free cash flow by 2028, representing nearly 25% of its current pro forma combined market capitalization [3] - The company plans to return nearly $7 billion to shareholders over the next two years, which is one-third of its market cap, and expects the market to better appreciate its growth potential post-Worldpay transaction [3] Group 3: Hedge Fund Interest in Global Payments Inc. - Global Payments Inc. was held by 53 hedge fund portfolios at the end of Q3, a decrease from 57 in the previous quarter [4] - While GPN shows investment potential, certain AI stocks are considered to offer greater upside with less downside risk [4]

Core Insights - Global Payments Inc.'s unit, Worldpay, has partnered with Regions Bank to enhance payment processing and cash flow management for businesses of all sizes [1][5] Group 1: Partnership Details - Worldpay's solutions will be accessible at approximately 1,250 Regions Bank branches across the Southeast, Midwest, and Texas, broadening service availability for businesses in these regions [2] - The integration of Worldpay's payment technologies with Regions Bank's banking relationships will allow clients to accept payments in-store, online, or via mobile, providing a seamless customer experience [3][8] Group 2: Value-Added Services - The partnership includes advanced fraud protection, smart authentication, chargeback and dispute resolution, and compliance tools, ensuring secure transactions across all channels [3] - Additional features such as customer insights, live agent support, and mobile app access will enhance merchant efficiency and provide a personalized experience for clients [4][8] Group 3: Business Impact - The collaboration is expected to increase the usage of Worldpay's solutions, potentially leading to higher revenues in the future [5] - Global Payments recently acquired Worldpay, which will now serve over 6 million merchant locations, processing $3.7 trillion in payment volume and around 94 billion transactions annually across more than 175 countries, enhancing GPN's scale and geographic reach [5][6] Group 4: Market Performance - Global Payments' shares have decreased by 12.6% over the past six months, compared to a 17.4% decline in the industry [7]

Core Viewpoint - Global Payments (GPN) has experienced significant selling pressure, resulting in a 10.6% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) indicates that GPN is currently in oversold territory with a reading of 28.19, suggesting a potential reversal in stock price [5] - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating oversold conditions [2][3] Group 2: Fundamental Indicators - Analysts have raised earnings estimates for GPN by 0.1% over the last 30 days, indicating a consensus among sell-side analysts that could lead to price appreciation [7] - GPN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which further supports the potential for a near-term turnaround [8]