Tuesday, January 13, 2015

Seeking Alpha: Global Payments Continues To Acquire And Process Growth

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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