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 or Stephanie Link.
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 $34.6 million.
- GPN has traded 4,265 shares today.
- GPN is trading at a new lifetime high.
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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 23.7. Currently there are 6 analysts that rate Global Payments a buy, no analysts rate it a sell, and 15 rate it a hold.
The average volume for Global Payments has been 714,600 shares per day over the past 30 days. Global Payments has a market cap of $5.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.06 and a short float of 1.7% with 2.76 days to cover. Shares are up 30.9% year-to-date as of the close of trading on Tuesday.
rates Global Payments as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, expanding profit margins and solid stock price performance. 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 6.6%. Since the same quarter one year prior, revenues rose by 11.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GLOBAL PAYMENTS INC has improved earnings per share by 26.4% 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 ($4.73 versus $3.37).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 16.6% when compared to the same quarter one year prior, going from $64.64 million to $75.37 million.
- The gross profit margin for GLOBAL PAYMENTS INC is rather high; currently it is at 68.04%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.69% is above that of the industry average.
- Powered by its strong earnings growth of 26.43% and other important driving factors, this stock has surged by 33.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Global Payments Ratings Report.