Global payments stock news: Is GPN Lagging Behind the Dow?

Global payments stock news, Global Payments Inc. (GPN) has been underperforming compared to the Dow Jones Industrial Average (DOWI) in recent months.

Global Payments Inc. Overview

Company Profile
With a market cap of $29 billion, Global Payments Inc. (GPN) is a prominent provider of payment technology and software solutions, serving customers across the Americas, Europe, and the Asia-Pacific region. The company operates through two main segments:

Merchant Solutions: Offers an extensive suite of payment processing and enterprise software services.
Issuer Solutions: Assists financial institutions in managing card portfolios and commercial payment systems.

Classified as a “large-cap” stock, Global Payments demonstrates a strong commitment to innovation, delivering secure and seamless payment experiences across card, digital, and check-based platforms. Headquartered in Atlanta, Georgia, the company has expanded internationally through strategic acquisitions and partnerships.

Global Payments Stock Recent Performance

Despite its robust market presence, Global Payments has faced challenges:

Stock Decline: The stock has slipped 19.2% from its 52-week high of $141.77, recorded in February. Over the past three months, shares have only risen by 2.3%, underperforming the Dow Jones Industrial Average's (DOWI) 4.5% gain during the same period.

Year-to-Date (YTD) Comparison: GPN is down 9.7% on a YTD basis, trailing DOWI's impressive 15.4% rise. Additionally, shares have declined 10.6% over the past year, compared to the Dow's 16.6% returns.

However, GPN stock has been consistently trading above its 50-day and 200-day moving averages since November.

Global Payments Financial Highlights

In its latest earnings report, Global Payments revealed:

Q3 Adjusted EPS: $3.08, which was weaker than expected.
Adjusted Revenue: $2.4 billion.
Positive Market Reaction: Despite the disappointing figures, shares rose 4.3% on October 30 after the company reaffirmed its 2024 guidance, projecting adjusted net revenue between $9.2 billion and $9.3 billion, and adjusted EPS of $11.54 to $11.70.
The announcement of a $600 million accelerated share repurchase program and a $1.1 billion agreement to sell AdvancedMD highlighted strong capital allocation and a focus on core operations. The Merchant Solutions segment also delivered 6.7% revenue growth and an 8.7% increase in adjusted operating income.

Competitive Landscape
In contrast, rival Corpay, Inc. (CPAY) has been outperforming GPN, with shares gaining 28.9% over the past year and up 26.6% YTD.

Analyst Outlook

Despite GPN’s struggles, analysts remain cautiously optimistic, with a consensus rating of "Moderate Buy" from 34 analysts. The average price target of $132.69 suggests a potential upside of 15.8% from current levels.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.