The best tonic for a robust stock valuation is ongoing financial outperformance, and Global Payments (NYSE:GPN)
has been delivering that over the past three quarters. Not only is
Global Payments continuing to benefit from strong businesses in markets
like Spain, but the company's direct efforts are offsetting the
lower-margin ISO channel and management seems to be doing a good job of
integrating and leveraging acquisitions.
I like the prospects for
Global Payments to improve its margins in the coming years through more
ex-US growth and the expansion of the higher-margin integrated payments
business. I also believe there are several markets that the company
could seek to enter by way of M&A that would also boost the
sustainable growth rate. The only problem is that a lot of this seems to
be worked into the stock price. I wouldn't argue against the idea that
ongoing outperformance could continue to boost the shares from here, but
I'd much rather buy on a dip if that were possible.
Read more here:
Global Payments Continues To Acquire And Process Growth
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