10 Best Cash App Stocks to Buy According to Hedge Funds

7. Global Payments Inc. (NYSE:GPN) 

Number of Hedge Fund Holders: 66

A top supplier of software and payment processing solutions and one of the Best Cash App Stocks, Global Payments Inc. (NYSE:GPN) specializes in helping small and medium-sized businesses. The business has operations in 30 countries, with Europe and Asia accounting for almost one-fourth of its income. In 2019, the firm and Total System Services combined in an all-stock transaction, giving shareholders of Total System Services 48% of the combined business. Issuer processing operations were added by the transaction.

In Q3 of 2024, strong operational execution and profitability were shown by Global Payments Inc. (NYSE:GPN), which achieved a 6% adjusted net revenue increase, 40 basis points of adjusted operating margin expansion, and 12% adjusted earnings per share growth YoY. Strong success in POS, software, and integrated and embedded businesses fueled the Merchant Solutions segment’s 7% adjusted net revenue growth. A noteworthy 23% increase in cloud point-of-sale sales for new SMBs and mid-market businesses suggests that there is a high level of demand in this industry.

Global Payments Inc. (NYSE:GPN)’s expanding position in the education sector is demonstrated by the double-digit adjusted net revenue growth it achieved, which was bolstered by noteworthy collaborations with institutions such as Swansea University in Wales, Brown University, and the University of British Columbia.

Global Payments Inc. (NYSE:GPN) committed to concentrating on its core businesses by conclusively agreeing to sell its AdvancedMD business for $1.125 billion as part of its plan to reduce operations. The business successfully finished five implementations in the Issuer Solutions division, including the first cloud conversion for a significant international financial institution in the Asia Pacific area. More than 65 million accounts in the segment’s pipeline support its growth prospects.

Weitz Large Cap Equity Fund stated the following regarding Global Payments Inc. (NYSE:GPN) in its Q3 2024 investor letter:

“We continued to increase the Fund’s positions in Global Payments Inc. (NYSE:GPN) and Idex Corp. during the quarter. Both stocks trade at significant discounts to our business value estimates. The companies have fundamental catalysts that could drive the stocks, but the timetable may have slipped a bit. The challenge is that investors want results now, especially in a bull market. We have specific milestones to track, and we think their achievement can be measured in quarters rather than years. In our view, the potential payoffs are well worth the wait.”