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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Global Payments (GPN - Free Report) . GPN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors will also notice that GPN has a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPN's industry currently sports an average PEG of 1.73. Within the past year, GPN's PEG has been as high as 0.84 and as low as 0.52, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPN has a P/S ratio of 2. This compares to its industry's average P/S of 2.14.
Finally, we should also recognize that GPN has a P/CF ratio of 6.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GPN's current P/CF looks attractive when compared to its industry's average P/CF of 14.33. Within the past 12 months, GPN's P/CF has been as high as 9.07 and as low as 4.69, with a median of 6.84.
These are just a handful of the figures considered in Global Payments'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 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Global Payments (GPN - Free Report) . GPN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors will also notice that GPN has a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPN's industry currently sports an average PEG of 1.73. Within the past year, GPN's PEG has been as high as 0.84 and as low as 0.52, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPN has a P/S ratio of 2. This compares to its industry's average P/S of 2.14.
Finally, we should also recognize that GPN has a P/CF ratio of 6.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GPN's current P/CF looks attractive when compared to its industry's average P/CF of 14.33. Within the past 12 months, GPN's P/CF has been as high as 9.07 and as low as 4.69, with a median of 6.84.
These are just a handful of the figures considered in Global Payments'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 is an impressive value stock right now.