Blog / Recession Resistant Consistent Growth Stock at Attractive Value

Recession Resistant Consistent Growth Stock at Attractive Value

Growth Stock Global Payments

Global Payments Inc. (GPN) has produced incredibly consistent growth since it was spun off in 2001. It grew at double-digit rates through the recession of 2008 -2009, and even produced modest growth during the Covid recession. As a result, Mr. Market priced the company’s stock at ludicrously high valuations. But as Warren Buffett has advised, “be greedy when others are fearful and fearful when others are greedy.” In January 2021, the market was greedy and shares sold at the lofty price earnings ratio of 33.63. Fortunately, the market has become fearful and the stock can be bought at a blended P/E ratio of 10.8 currently. At this valuation, the company offers a strong margin of safety and the opportunity to earn 30% or better annualized returns through 2024.

Growth Stock Global Payments
growth stock Global Payments

Therefore, investors looking for an investment-grade growth stock at an extremely attractive valuation might want to consider Global Payments Inc.

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Disclosure: Long GPN.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.