Strong And Under The Radar Today: Global Payments (GPN)

Trade-Ideas LLC identified Global Payments (GPN) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Global Payments

(

GPN

) as a strong and under the radar 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 $92.2 million.
  • GPN has traded 180.671999999999997044142219237983226776123046875 options contracts today.
  • GPN is making at least a new 3-day high.
  • GPN has a PE ratio of 33.
  • GPN is mentioned 1.26 times per day on StockTwits.
  • GPN has not yet been mentioned on StockTwits today.
  • GPN is currently in the upper 20% of its 1-year range.
  • GPN is in the upper 35% of its 20-day range.
  • GPN is in the upper 45% of its 5-day range.
  • GPN is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on GPN:

Global Payments Inc. provides payment solutions for credit cards, debit cards, electronic payments, and check-related services. It 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 33. Currently there are 11 analysts that rate Global Payments a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Global Payments has been 2.2 million shares per day over the past 30 days. Global Payments has a market cap of $11.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.21 and a short float of 2.3% with 2.85 days to cover. Shares are up 16.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Global Payments as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • GPN's revenue growth has slightly outpaced the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GLOBAL PAYMENTS INC has improved earnings per share by 14.0% 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 $2.06 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($2.98 versus $2.06).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the IT Services industry average. The net income increased by 10.4% when compared to the same quarter one year prior, going from $62.57 million to $69.06 million.
  • Net operating cash flow has significantly increased by 252.85% to $423.95 million when compared to the same quarter last year. In addition, GLOBAL PAYMENTS INC has also vastly surpassed the industry average cash flow growth rate of 31.48%.
  • The gross profit margin for GLOBAL PAYMENTS INC is rather high; currently it is at 67.71%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.15% trails the industry average.

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