5 Best Stocks to Buy Now According to Billionaire Larry Robbins

3. Global Payments Inc. (NYSE:GPN)

Glenview Capital’s Stake Value: $322 million

Percentage of Glenview Capital’s 13F Portfolio: 6.5%

Number of Hedge Fund Holders: 64

Global Payments Inc. (NYSE:GPN) is a Fortune-500 financial technology company that provides payment processing solutions. 

Global Payments Inc. (NYSE:GPN) has 64 hedge funds invested in its stock. The total hedge fund ownership equity stands at $3.2 billion as of the first quarter of 2022. 

On May 17, Goldman Sachs analyst Will Nance initiated coverage of Global Payments Inc. (NYSE:GPN) with a Neutral rating on the shares and set a price target of $151, implying 24% upside. While constructive on Global Payments’ software-oriented approach, Nance views the company’s greater SMB and credit volume exposures as more economically sensitive and prefers to take a more defensive stance given the levels of macroeconomic uncertainty. 

Oakmark Funds mentioned Global Payments Inc. (GPN) in their Q1 2022 investor letter. Here’s what they said: 

“Global Payments (NYSE:GPN) is a leading provider of merchant acquiring services. The company is also one of the largest providers of payment processing and related technology solutions to credit card issuers. We believe Global Payments’ merchant acquiring business is well positioned given its strength in software-driven payments. This is one of the fastest growing parts of the industry as small business customers are increasingly recognizing the efficiency benefits of having payments seamlessly integrated into the software they use to run their businesses. In addition, Global Payments benefits from the broader secular shift away from cash and toward electronic payment methods. Together, these tailwinds have the potential to drive low-double-digit revenue growth and even faster earnings growth. With this strong outlook and with management returning a significant portion of free cash flow to shareholders via repurchase, we think the stock looks attractive at its current valuation of just 12.5x next year’s expected EPS.”