Global Payments (GPN) Hits New Lifetime High
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Global Payments as such a stock due to the following factors:
- GPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.2 million.
- GPN has traded 813 shares today.
- GPN is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GPN with the Ticky from Trade-Ideas. See the FREE profile for GPN NOW at Trade-Ideas
More details on GPN:
Global Payments Inc. provides electronic payments transaction processing services. The company operates in two segments, North America Merchant Services and International Merchant Services. The stock currently has a dividend yield of 0.1%. GPN has a PE ratio of 24.6. Currently there are 6 analysts that rate Global Payments a buy, no analysts rate it a sell, and 14 rate it a hold.
The average volume for Global Payments has been 516,500 shares per day over the past 30 days. Global Payments has a market cap of $6.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.92 and a short float of 1.4% with 2.12 days to cover. Shares are up 13.6% year-to-date as of the close of trading on Tuesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Global Payments as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- GLOBAL PAYMENTS INC has improved earnings per share by 7.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GLOBAL PAYMENTS INC increased its bottom line by earning $3.37 versus $2.76 in the prior year. This year, the market expects an improvement in earnings ($4.80 versus $3.37).
- The gross profit margin for GLOBAL PAYMENTS INC is rather high; currently it is at 67.99%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, GPN's net profit margin of 10.72% significantly trails the industry average.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, GLOBAL PAYMENTS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- You can view the full Global Payments Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null