We recently published a list of 11 Technological stocks of overload to buy according to coverage funds. In this article, let’s take a look at where Global Payments Inc. (NYSE: GPN) It remains against other more important technological actions to buy according to the coverage funds.
Technological stocks have been one of the best performances in the last 15 years. The technological sector has constantly surpassed the broad American market since the consequences of the financial crisis of 2008, with periods especially strong in 2014-2021 and 2023-2024. Technological actions usually work well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advances. During these periods, technology companies usually trade with hyper-cost valuations, which reflect strong growth opportunities. Thus, many investors believe that they are too overrated, avoid exposure to them, and thus the yields are lost. The key point when it comes to technological stocks is that their assessments are instantaneously released with the slightest uncertainty and macroeconomic agitation, which means that the best time to acquire technological actions is when they release and when fear dominates the market.
We believe that we are currently in a timely manner to increase exposure to technology, because it is the lowest sector. Yardeni’s graphics show that S&P information technology is currently listed at 24.4 forward p/e, well below the peak of the end of 2024 around 30, marking a decrease of almost 20% of the ratings (by comparison, the valuation of the large market hired only 10%). Technological stocks have not been so cheap since 2023, when artificial intelligence megatrend had just proliferated. In addition, the same source showed that the sector has experienced 2 consecutive quarters of negative reviews in the expectations of gain, which means that Wall Street analysts already have a short -term head price, reducing the possibilities of negative surprises in the near future. That is, the best possible scenario to buy is when both Wall Street and the market are pessimistic, which translates into weak expectations and cheap ratings, and this is exactly what seems to happen to the technological sector right now.
In short, we came to the conclusion that the prices of technological actions are lower now. The only question to answer is whether the macroeconomic background will be favorable enough to facilitate a new bull race for the technology sector. First, as we have mentioned earlier, technological actions prosper in a low rate environment: recent comments from a federal reserve officer suggest higher odds than interest rates will be reduced until June. As a result, the returns of the United States Government’s maturity to the United States maturity fell significantly last week, in anticipation of lower rates. This increases the likelihood that technological ski lifts will disassociate, and companies will spend more in AI, cloud computing, cybersecurity and other technological projects that require great cash and are sensitive to funding costs. We are also pleased to find the confirmation of our hypothesis of leading consultants such as Deloitte. The following is a fragment of its recent perspective report of the 2025 technology industry:
“ Despite recent uncertainty and economic turbulence, the technology industry seems to be played for growth by 2025, assisted by augmented TI spending, AI investments, and a renewed approach to innovation.These analysts project that global computer expense will grow 9.3% by 2025, with the data center and software segments that grow on double rates. 2028. Although the tendency of technological dismissal persisted by 2024, the reductions seemed to slow down compared to 2023. “
That said, the current market configuration seems extremely favorable to invest in technological stocks that could recover part or all lost value during the recent Trump tariff agitation. With fare exceptions granted to electronic products, and President Trump thinks of the possibility that China’s rates will be of 145%unsustainable, the prospects of the technology sector are becoming brighter.
Global Payments Inc. (GPN): Among the overload technological shares to buy according to the coverage funds
A payment terminal in action with customers apart from the experience.
To collect our list of technology actions of overload, we have used a screen to identify the stocks of the technological sector that have a relative force index (RSI) below 40. Then we compared the list with the database owned by Insider Monkey of the property of coverage funds and included in the article the 11 stocks with the largest number of coverage that the actions have, Ascending.
Why are we interested in the stocks that cover the funds? The reason is simple: our research has shown that we can overcome the market by imitating the best stock options for the best coverage funds. The strategy of our quarterly bulletin selects 14 stocks of small layers and large layers each quarter and has returned 373.4% since May 2014, surpassing its reference point at 218 percentage points (Check out more details here)).
RSI: 33.12
Number of coverage fund holders: 71
Global Payments Inc. (NYSE: GPN) is a US -based financial technology company that provides processing and payment software solutions to more than 4.6 million merchants, 1,500 financial institutions and billions of consumers around the world. In short, GPN technology safely connects companies, banks and clients to process payments made with cards, telephones or online systems.
Global Payments Inc. (NYSE: GPN) It gained a strong financial performance by 2024, reaching a growth of net income adjusted to 6%, tight operating margins and the growth of two -digit tight EPS, despite incremental heads of FX. The company generated approximately $ 3 billion in a adjusted free cash flow and returned $ 1.8 billion to shareholders, including the revenue of the recent divestment of AdvancedMD. The company made significant progress in its transformation agenda, including consolidating technological equipment under common leadership, centralizing operational functions and unifying the business of merchant solutions in a homogeneous world organization.
By 2025, Global Payments Inc. (NYSE: GPN) provides for a growth of net income adjusted to the constant currency of 5% to 6% compared to 2024, excluding the provisions, with an annual expansion of the adjusted operating margin of approximately 50 basic points. The company has increased its operational transformation target to more than $ 600 million of annual operating income income income income in the first half of 2027, up to the initial prospects of more than $ 500 million. The company plans to return $ 2 billion to shareholders by 2025 and will continue to carry out their transformation initiatives, including the global launch of its Genius platform and the rationalization of operations. With ambitious plans and at least 71 coverage funds possessed by the shares, GPN secures his second place on our list of exceeding actions to invest.
Generally, GPN Ranks 2nd In our list of higher technological stocks to buy according to the coverage funds. Although we recognize the potential of GPN as an investment, our conviction lies in the belief that the AI actions have a greater promise to obtain higher yields and do it in a shorter period. There is an AI stock that increased since the beginning of 2025, while the popular AI actions lost around 25%. If you are looking for a stock of Ia more promising than GPN but you are quoting less than five times, see our report on this Ia stock cheap.
