Global Payments (GPN - Free Report) closed at $200.79 in the latest trading session, marking a -0.44% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 0.54%.
Heading into today, shares of the electronics payment processing company had gained 5.38% over the past month, lagging the Business Services sector's gain of 5.9% and outpacing the S&P 500's gain of 3.22% in that time.
Investors will be hoping for strength from GPN as it approaches its next earnings release, which is expected to be February 12, 2020. On that day, GPN is projected to report earnings of $1.59 per share, which would represent year-over-year growth of 19.55%. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 163.72% from the year-ago period.
Investors should also note any recent changes to analyst estimates for GPN. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.04% higher within the past month. GPN is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note GPN's current valuation metrics, including its Forward P/E ratio of 26.68. For comparison, its industry has an average Forward P/E of 23.32, which means GPN is trading at a premium to the group.
We can also see that GPN currently has a PEG ratio of 1.47. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.