Back to top

Image: Shutterstock

Reasons to Retain FLEETCOR Technologies (FLT) in Your Portfolio

Read MoreHide Full Article

FLEETCOR Technologies, Inc.  has had an impressive run on the bourses over the past three months. The stock has appreciated 11.5% against 2.4% decline of the industry it belongs to.

FLEETCOR has an expected long-term (three to five years) earnings per share growth rate of 16%. The company’s earnings are expected to register growth of 16.6% in 2022 and 14.4% in 2023.

Factors That Auger Well

FLEETCOR’s top line continues to grow organically, driven by continued strong sales, robust retention levels and healthy same-store sales. The company’s organic revenue growth was 17% in the fourth quarter of 2021.

Acquisitions, over time, have helped FLEETCOR expand its customer base, headcount and operations. The recent acquisition of Levarti is expected to strengthen FLEETCOR’s airline-lodging business that reserves multiple hotel rooms for global airlines’ crews and disrupted passengers, every year. Levarti’s MAX mobile apps offer passengers an end-to-end digital experience that includes check-in, on-flight contactless payments, baggage tracking and claims.

The 2021 acquisition of Associated Foreign Exchange boosts the company’s revenues in its corporate payments business.

FLEETCOR has a track record of returning value to shareholders through share repurchases. In 2021, 2020 and 2019, it repurchased shares worth $1.4 billion, $849.9 million and $694.9 million, respectively.

Some Risks

FLEETCOR has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $2.3 billion compared with the long-term debt level of $4.5 billion.

Zacks Rank and Stocks to Consider

FLEETCOR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , NV5 Global (NVEE - Free Report) and Clean Harbors (CLH - Free Report) .

Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy). The company has a long-term earnings growth of 6.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 74.5% in the past year.

NV5 Global also carries a Zacks Rank #1. The company has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.

NV5 Global’s shares have surged 37.5% in the past year. The company has a long-term earnings growth of 14.2%.

Clean Harbors carries a Zacks Rank #2. The company has an expected earnings growth rate of 17% for the current year.

Clean Harbors pulled off a trailing four-quarter earnings surprise of 43.2%, on average. CLH’s shares have jumped 27.4% in the past year.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Clean Harbors, Inc. (CLH) - free report >>

Cross Country Healthcare, Inc. (CCRN) - free report >>

NV5 Global, Inc. (NVEE) - free report >>

Published in