4. Global Payments Inc. (NYSE:GPN)
TTM Net Income: $1.41 Billion
5-Year Net Income CAGR: 23.85%
5-Year Revenue CAGR: 22.72%
Number of Hedge Fund Holders: 66
Global Payments Inc. (NYSE:GPN) is an American payments technology company that offers innovative software and services to clients worldwide. The company specializes in providing a comprehensive range of solutions that help businesses operate more efficiently across various channels. It delivers tailored technology designed for various industries. The company’s unique end-to-end global commerce platform operates in over 100 countries, enabling clients to streamline their payment processes and enhance customer experiences.
At its recent 2024 Investor Conference, the company outlined a clear strategy aimed at becoming the preferred partner for commerce solutions worldwide. Global Payments Inc. (NYSE:GPN) plans to unify its Merchant Solutions globally under a common brand, Genius. The company will be focusing on small and medium-sized businesses (SMBs) to provide its comprehensive suite of software and commerce solutions. Additionally, Global Payments Inc. (NYSE:GPN) is capitalizing on growth opportunities in its Issuer Solutions segment through cloud modernization and cross-selling initiatives, while also evaluating options to enhance shareholder value.
Global Payments Inc. (NYSE:GPN) anticipates that its operational transformation initiatives will unlock over $500 million in adjusted run-rate operating income benefits by mid-2027. With a strong business model and robust free cash flow generation, the company aims to return $7.5 billion to shareholders over the next three years.
The company is actively enhancing its market position by expanding its point-of-sale solutions and entering new partnerships. Recently, Global Payments Inc. (NYSE:GPN) announced an agreement with Diamond Baseball Holdings to become the official commerce technology partner for its Minor League Baseball franchises in the US and Canada. Additionally, the company has secured new stadium partnerships with several UK football clubs, including Newcastle, Birmingham City, and Nottingham Forest.
Global Payments Inc. (NYSE:GPN) reported strong performance for Q2 2024, with GAAP revenue reaching $2.57 billion, a 5% increase year-over-year. The company also reported GAAP diluted earnings per share (EPS) of $1.47, marking a significant 40% rise from the previous year.
With a focus on operational transformation and strategic growth, the company is well-positioned to capitalize on future opportunities, making it an attractive stock for potential investors. Analysts have a positive outlook on GPN, with a 12-month median price target of $130.00. This suggests a potential increase of 26.42% from the current stock price.
As one of the most profitable high-growth stocks, Global Payments Inc. (NYSE:GPN) has managed to grow its top line at a compound annual growth rate (CAGR) of 22.72% over the past five years, while its bottom line has increased at a CAGR of 23.85% during the same period.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 66 hedge funds held stakes in Global Payments Inc. (NYSE:GPN) in the second quarter of 2024.
