8 Most Undervalued Growth Stocks To Buy According To Wall Street Analysts

6. Global Payments Inc. (NYSE:GPN)

Forward P/E: 8.49

Earnings Growth: 11.20%

Number of Hedge Fund Holders: 66

Analyst Upside Potential: 33.81%

Global Payments Inc. (NYSE:GPN) ranks 7th on our list of most undervalued growth stocks to buy according to Wall Street analysts. 37 analysts have a consensus Buy rating on the stock, with their 12-month median price target of $132 presenting an upside of 34%.

It is an American financial technology company that makes payment processing services available to various companies. The company operates through three main business areas including Merchant Solutions, Issuer Solutions, and Business Operations.

Merchant Solutions provides tools to accept payments through credit cards, debit cards, and online methods. Moreover, Issuers Solutions allows banks and other financial organizations to manage their credit and debit card programs and also enables business-to-business payments. Lastly, the Business Operations segment accounts for software that enables global payments.

The network of Global Payments Inc. (NYSE:GPN) spans over 4.6 million merchant accounts, with around 4,000 technology partners, and 1,500 financial institutions spread across over 100 industries.

The company is doing great in terms of growing its revenue and business presence. The second quarter of 2024 came in with a 6% increase year-over-year to around $2.32 billion with operating margins up 40 basis points to 45.2%.

Revenue growth was driven by a strong performance in its Merchant Solutions department. During the quarter the segment witnessed double-digit growth in its Independent Software Vendors (ISV) and market bookings which resulted in overall revenue going up 8% year-over-year. The Issuer Segment was also a success with 4% growth during the same time and margins up 10 basis points to 46.8%.

While Global Payments Inc. (NYSE:GPN) is already trading at a discount to its sector. Analysts are expecting its earnings to grow by 11% during the year, making it an attractive investment opportunity.

Parnassus Value Equity Fund stated the following regarding Global Payments Inc. (NYSE:GPN) in its Q2 2024 investor letter:

“Global Payments Inc. (NYSE:GPN) stock fell on investor fears that a slowing economy could weigh on payment processing companies. The company will host an investor day focused on improving efficiencies and strategic redeployment of assets in the fall, which we believe will unlock hidden value in the undervalued shares.”