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Global Payments (GPN) Dips More Than Broader Markets: What You Should Know

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Global Payments (GPN - Free Report) closed at $135.07 in the latest trading session, marking a -0.84% move from the prior day. This change lagged the S&P 500's 0.34% loss on the day.

Prior to today's trading, shares of the electronics payment processing company had gained 7.18% over the past month. This has outpaced the Business Services sector's gain of 6.56% and the S&P 500's gain of 5.03% in that time.

Investors will be hoping for strength from Global Payments as it approaches its next earnings release. In that report, analysts expect Global Payments to post earnings of $2.05 per share. This would mark year-over-year growth of 12.64%. Our most recent consensus estimate is calling for quarterly revenue of $2.03 billion, up 12.12% from the year-ago period.

GPN's full-year Zacks Consensus Estimates are calling for earnings of $9.51 per share and revenue of $8.45 billion. These results would represent year-over-year changes of +16.54% and +9.15%, respectively.

Investors should also note any recent changes to analyst estimates for Global Payments. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Global Payments currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Global Payments has a Forward P/E ratio of 14.32 right now. For comparison, its industry has an average Forward P/E of 18.7, which means Global Payments is trading at a discount to the group.

Also, we should mention that GPN has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.11 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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