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