New Lifetime High For Global Payments (GPN)

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 Global Payments ( GPN) 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 $47.0 million.
  • GPN has traded 4,820 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 worldwide. The company serves as the processing intermediary between the merchant, the credit and debit networks, and the financial institutions that issue cards. The stock currently has a dividend yield of 0.1%. GPN has a PE ratio of 22.7. Currently there are 8 analysts that rate Global Payments a buy, 2 analysts rate it a sell, and 13 rate it a hold.

The average volume for Global Payments has been 755,100 shares per day over the past 30 days. Global Payments has a market cap of $5.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.12 and a short float of 2.4% with 2.75 days to cover. Shares are up 10.3% year-to-date as of the close of trading on Friday.

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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, solid stock price performance, growth in earnings per share, good cash flow from operations and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 20.8%. Since the same quarter one year prior, revenues slightly increased by 7.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 50.90% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GPN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GLOBAL PAYMENTS INC has improved earnings per share by 14.6% 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 $2.76 versus $2.36 in the prior year. This year, the market expects an improvement in earnings ($4.10 versus $2.76).
  • Net operating cash flow has significantly increased by 674.25% to $434.87 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 20.77%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared 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 exceeded that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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