Global Payments Inc. (GPN), headquartered in Atlanta, Georgia, provides payment technology and software solutions for card, check, and digital-based payments. With a market cap of $18.4 billion, the company offers funds transfer, merchant banking, accounting, Internet, and other services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and GPN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the software - infrastructure industry. GPN has a strong market position due to its diversified portfolio, strategic scale, and innovation. The company's focus on talent management and digital payments positions it well for future trends, solidifying its competitive advantage.
Despite its notable strength, GPN slipped 35.1% from its 52-week high of $120, achieved on Nov. 29, 2024. Over the past three months, GPN stock has declined 10.9%, underperforming the Nasdaq Composite’s ($NASX) 8% gains during the same time frame.
In the longer term, shares of GPN rose 1.4% on a six-month basis but dipped 33.9% over the past 52 weeks, underperforming NASX’s six-month gains of 20.6% and solid 18.6% returns over the last year.
To confirm the bearish trend, GPN has been trading below its 200-day moving average since mid-February, with a minor fluctuation. The stock has been trading below its 50-day moving average since late October.
On Nov. 4, GPN shares closed up by 3.7% after reporting its Q3 results. Its adjusted EPS of $3.26 beat Wall Street expectations of $3.23. The company’s adjusted revenue was $2.43 billion, beating Wall Street's $2.41 billion forecast.
In the competitive arena of software - infrastructure, Corpay, Inc. (CPAY) has taken the lead over GPN, showing resilience with 17% losses over the past 52 weeks, but lagged behind the stock with a 10% downtick on a six-month basis.
Wall Street analysts are reasonably bullish on GPN’s prospects. The stock has a consensus “Moderate Buy” rating from the 30 analysts covering it, and the mean price target of $103.17 suggests a notable potential upside of 32.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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