Atlanta, Georgia-based Global Payments Inc. (GPN) provides payment technology and software solutions for card, check, and digital-based payments. Valued at a market cap of $20 billion, the company offers a broad range of services, including card payment processing, point-of-sale (POS) systems, e-commerce solutions, payroll and human capital management software, and business analytics. 

This payments technology provider has considerably lagged behind the broader market over the past 52 weeks. Shares of GPN have declined 17.5% over this time frame, while the broader S&P 500 Index ($SPX) has surged 21.9%. Moreover, on a YTD basis, the stock is down 26.8%, compared to SPX’s 7.8% uptick. 

Narrowing the focus, GPN’s underperformance looks more pronounced when compared to the Amplify Digital Payments ETF’s (IPAY) 26.5% return over the past 52 weeks and 1.1% YTD loss. 

Shares of GPN surged 9.1% on Aug. 6, after its Q2 earnings release. The company reported adjusted net revenue of $2.4 billion, up 1.6% year-over-year and in line with Wall Street’s forecast. Moreover, compared to the year-ago quarter, its adjusted operating income increased 4.5% to $1.1 billion, while its adjusted EPS advanced 10.7% to $3.10, exceeding consensus estimates by 2.3%. Strength across its key merchant and issuer solutions segments aided the results. 

In addition to the earnings beat, the stock’s sharp rally was supported by a broader market surge fueled by speculation around a potential Fed rate cut.

For the current fiscal year, ending in December, analysts expect GPN’s EPS to grow 4.5% year over year to $11.55. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion. 

Among the 32 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on 13 “Strong Buy,” one "Moderate Buy,” 16 “Hold,” and two “Strong Sell” ratings. 

This configuration is more bullish than a month ago, with 11 analysts suggesting a “Strong Buy” rating. 

On Aug. 7, RBC Capital analyst Daniel Perlin maintained a "Hold" rating on GPN and set a price target of $93, implying a 13.4% potential upside from the current levels. 

The mean price target of $101.44 represents a 23.7% premium from GPN’s current price levels, while the Street-high price target of $194 suggests an ambitious upside potential of 136.5%.