10 Cheap Software Stocks to Buy According to Analysts

6. Global Payments Inc. (NYSE:GPN)

Forward P/E Ratio: 7.44

Analyst Upside: 28.94%

Global Payments Inc. (NYSE:GPN) is a US-based fintech firm that provides payment technology and software solutions to 4.6 million merchant accounts, 4,000 technology partners, and 1,500 financial institutions in more than 100 sectors worldwide.

On February 18, Citi analysts reduced their price target for Global Payments Inc. (NYSE:GPN) to $135 from $138, while maintaining a Buy rating. The analysts highlighted that the company’s status has not altered considerably since the announcement of its third-quarter data in late October, which they consider favorable, underlining the importance of consistency in improving stock performance. With sales of $10.1 billion and a high free cash flow yield of 11%, Global Payments’ continuing business shift seems to be taking shape.

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.”