12 Most Undervalued Tech Stocks to Invest in Now

3. Global Payments Inc. (NYSE:GPN)

Forward P/E Ratio: 9.44

Earnings Growth: 11.69%

Number of Hedge Fund Holders: 66

Global Payments Inc. (NYSE:GPN) is a financial technology company that provides software solutions that help businesses in payment processing. The company provides various services including integrated and embedded payment systems, Point-of-Sale (POS) systems, and core payments. It operates through two main segments including Merchant and Issuer Solutions.

Global Payments Inc. (NYSE:GPN) is positioning itself as a leader in the intersection of software and payment technologies. Management has been focused on streamlining operations to simplify its business model, unify teams, and capitalize on its competitive strengths. To achieve this the company is consolidating its payment solutions under a single Genius brand. Moreover, management has also sold AdvancedMD business to Francisco Partners as part of its effort to focus on core operations and enhance capital returns.

Global Payments Inc. (NYSE:GPN) is also experiencing strong growth in its POS offerings, particularly in North America, where new account sales increased significantly. This led the Merchant Solutions revenue to grow 7% year-over-year during the fiscal third quarter of 2024. Looking ahead, management is also planning to extend its POS offerings into international markets including Mexico, Germany, and other European countries. It is one of the most undervalued tech stocks to invest in now.

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.”