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Is Global Payments (GPN) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Global Payments (GPN - Free Report) is a stock many investors are watching right now. GPN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.13. This compares to its industry's average Forward P/E of 22.24. GPN's Forward P/E has been as high as 12.20 and as low as 8.64, with a median of 10.28, all within the past year.
Investors should also note that GPN holds a PEG ratio of 0.65. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GPN's industry has an average PEG of 1.38 right now. GPN's PEG has been as high as 0.83 and as low as 0.55, with a median of 0.71, all within the past year.
Finally, our model also underscores that GPN has a P/CF ratio of 8.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.33. Within the past 12 months, GPN's P/CF has been as high as 17.44 and as low as 8.60, with a median of 11.92.
PagSeguro Digital (PAGS - Free Report) may be another strong Financial Transaction Services stock to add to your shortlist. PAGS is a # 2 (Buy) stock with a Value grade of A.
PagSeguro Digital is trading at a forward earnings multiple of 9.70 at the moment, with a PEG ratio of 0.67. This compares to its industry's average P/E of 22.24 and average PEG ratio of 1.38.
Over the past year, PAGS's P/E has been as high as 12.28, as low as 6.33, with a median of 9.58; its PEG ratio has been as high as 1.30, as low as 0.60, with a median of 0.71 during the same time period.
PagSeguro Digital also has a P/B ratio of 1.61 compared to its industry's price-to-book ratio of 7.39. Over the past year, its P/B ratio has been as high as 1.80, as low as 0.88, with a median of 1.43.
These are just a handful of the figures considered in Global Payments and PagSeguro Digital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPN and PAGS is an impressive value stock right now.
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Is Global Payments (GPN) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Global Payments (GPN - Free Report) is a stock many investors are watching right now. GPN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.13. This compares to its industry's average Forward P/E of 22.24. GPN's Forward P/E has been as high as 12.20 and as low as 8.64, with a median of 10.28, all within the past year.
Investors should also note that GPN holds a PEG ratio of 0.65. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GPN's industry has an average PEG of 1.38 right now. GPN's PEG has been as high as 0.83 and as low as 0.55, with a median of 0.71, all within the past year.
Finally, our model also underscores that GPN has a P/CF ratio of 8.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.33. Within the past 12 months, GPN's P/CF has been as high as 17.44 and as low as 8.60, with a median of 11.92.
PagSeguro Digital (PAGS - Free Report) may be another strong Financial Transaction Services stock to add to your shortlist. PAGS is a # 2 (Buy) stock with a Value grade of A.
PagSeguro Digital is trading at a forward earnings multiple of 9.70 at the moment, with a PEG ratio of 0.67. This compares to its industry's average P/E of 22.24 and average PEG ratio of 1.38.
Over the past year, PAGS's P/E has been as high as 12.28, as low as 6.33, with a median of 9.58; its PEG ratio has been as high as 1.30, as low as 0.60, with a median of 0.71 during the same time period.
PagSeguro Digital also has a P/B ratio of 1.61 compared to its industry's price-to-book ratio of 7.39. Over the past year, its P/B ratio has been as high as 1.80, as low as 0.88, with a median of 1.43.
These are just a handful of the figures considered in Global Payments and PagSeguro Digital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPN and PAGS is an impressive value stock right now.