We recently compiled a list of the 13 most promising fintech stocks to buy. In this article, we’ll take a look at how Global Payments Inc. (NYSE:GPN) stands compared to other promising fintech stocks.
Global Fintech Overview
According to a report by Expert Market Research, the global fintech market was valued at $226.71 billion in 2023 and will grow to $917.17 billion by 2032, with a compound annual growth rate of 16.8% from 2024 to 2032. is expected to grow. CNBC published comprehensive market size. Fintech industry distribution by category. Industry composition: 20% payments, 16% alternative finance, 14% neo-banking, 12% wealth technology, 10% business process solutions, 8% financial planning, 10% banking solutions, and digital assets. is 6%.
The fintech market has experienced rapid growth over the past decade and continues to show resilience and strength. In a survey conducted by the World Economic Forum, 51% of fintech companies said strong consumer demand for their services was the main driver of growth. This trend was consistent across all regions. Digital innovation by such fintech companies operating in developing countries has only helped people escape the traditional banking system.
The fast-growing fintech sector aims to provide the best of both worlds: innovative banking and cutting-edge technology along with safety, but recently customers have been facing safety and security issues. I am. An estimated 100,000 Americans who were customers of fintech apps were locked out of their bank accounts in early May. This comes after bank-fintech intermediary Synapse Financial Technologies filed for bankruptcy in April and the accounts of customers at its bank partners were frozen. Although the fintech apps in this scenario were relatively small compared to the dominant players, Hew Song said in a conversation with CNBC that the fintech model is growing, with fintech companies partnering with banks and Chime and PayPal following suit. I questioned the safety.
There are positive developments in this regard for those using fintech apps that could potentially hold up their funds in the event of an accident. Recently, the US banking regulator, the Federal Deposit Insurance Corporation, proposed tightening rules for banks that partner with fintech companies. Under these rules, these banks must identify the beneficiary of each account and its balance. The proposal would therefore ensure that even if an intermediary goes bankrupt, a third party like Synapse can maintain its records, as long as the bank retains unrestricted access to its data.
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Our methodology:
To compile our list of the 13 most promising fintech stocks to buy, we first researched ETFs and online rankings to gather a preliminary list of 30 such stocks. We then selected the top 13 stocks with the highest upside potential. Here are the 13 most promising fintech stocks to buy as of September 30th, ordered by ascending average upside potential. We also supplemented the ranking with the number of hedge funds held by each stock as of the second quarter of 2024.
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A payment terminal that works in conjunction with the customer, separate from the experience.
Global Payments Inc. (NYSE:GPN)
Average increase potential: 30.67%
Number of hedge funds: 66
Global Payments Inc. (NYSE:GPN) is an American financial technology company that provides payment technology and software solutions to its customers. The company enables simple, fast and secure payments. We are headquartered in Georgia and have 27,000 team members worldwide. We have a global presence spanning North America, Europe, Asia Pacific, and Latin America.
The company has a global commerce system consisting of 4.6 million merchant accounts, 4,000 technology partners, 1,500 financial institutions, and more than 100 industries. The company claims to lead the industry in terms of innovation, scale and service. The company has a strong ecosystem of brands across various sectors, offering unparalleled solutions. These include globalpayments, Heartland, greatergiving, AdvancedMD, ECSI, and touchnet. Therefore, Global Payments is well diversified in terms of geography, vertical markets, and revenue sources.
Global Payments Inc. (NYSE:GPN) ended the second quarter with high-single-digit growth in adjusted net revenue and double-digit growth in adjusted earnings per share. Adjusted net revenue increased 6% to $2.32 billion, and adjusted earnings per share increased 12% to $2.93. The company is currently streamlining and simplifying its business through operational transformation and is well-positioned to take advantage of growth opportunities.
The company aims to be the global partner of choice for commerce solutions and recently outlined its strategic focus. In Merchant Solutions, the company aims to fully integrate its business around the world by harmonizing products and features under a common brand called Genius and expanding them worldwide using vast distribution channels. It has been decided. In the Publisher Solutions segment, the company is benefiting from growth opportunities through cloud modernization and cross-selling efforts.
As of Q2, the company was held by 66 hedge funds. Analysts are in consensus on the stock with a buy rating, and the median one-year price target indicates an upside of 30.67% from the current price.
Overall, GPN ranks 3rd on our list of the most promising fintech stocks to buy. While we recognize GPN’s potential as an investment, we believe that some highly undervalued AI stocks have a better chance of delivering higher returns and in a shorter time frame. I am. If you’re looking for highly undervalued AI stocks that have more promise than GPN but trade at less than 5x earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
