Riding on a steady growth momentum, shares of
Global Payments Inc.
) reached a new 52-week high of $72.04 on Mar 6. This global
service provider of electronic payments witnessed a jump of about
10.3% since the beginning of 2014, when the company reported its
fiscal second-quarter 2014 results.
Moreover, the encouraging momentum of this Zacks Rank #2 (Buy)
stock is fuelled by strategic initiatives and improved inorganic
growth coupled with a strong liquidity and competitive position.
Yesterday's closing price represents a robust one-year return of
about 49.2% against a return of 23.6% clocked by the S&P 500
index. Average volume of shares traded over the last three months
stands at approximately 754.3K.
On Jan 8, Global Payments reported fiscal second-quarter 2014
operating earnings per share of $1.07, comfortably surpassing the
Zacks Consensus Estimate of $1.02 and the year-ago number of 93
cents. The company delivered a positive earnings surprise of 4.9%
during the quarter.
Results reflected higher revenues that were partially offset
by higher operating expense that amplified margins. Improved
revenue and income from merchant services across North America
and international operations contributed to overall growth.
Improved results also impelled management to raise its
operating earnings outlook for fiscal 2014 to the band of
$4.03-$4.10 per share, up 5 cents from the prior projection. This
favors a reasonable mid-to-high single digit top-line growth.
The culmination of the acquisition of Payment Processing Inc.
(PayPros) earlier this week further propels long-term growth
opportunities and expanded network for Global Payments, with
minimal adverse impact on fiscal 2014 earnings.
Concurrently, Global Payments has showcased prudent capital
management by refinancing debt on improved terms recently, in
order to remain sufficiently liquid and lower the borrowing
costs. This in turn, leaves ample scope for pursuing capital
deployment strategies.We believe the upcoming quarters should
benefit from these operating and capital actions, as reflected in
the market's positive reaction.
Some better-ranked insurers that warrant a look are
Radian Group Inc.
VeriFone Systems Inc.
). All these stocks carry the same Zacks Rank as Global
GLOBAL PAYMENTS (GPN): Free Stock Analysis
KEMPER CORP (KMPR): Free Stock Analysis
VERIFONE SYSTMS (PAY): Free Stock Analysis
RADIAN GRP INC (RDN): Free Stock Analysis
To read this article on Zacks.com click here.