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Reasons Why Fleetcor (FLT) Should be Retained by Investors
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Holding a Growth Score of B, Fleetcor Technologies, Inc. has performed decently in the bourses during the past six months, growing at 4.9%.
The company’s earnings for 2023 and 2024 are expected to improve 5.6% and 16.2%, respectively, year over year. Revenues are expected to increase 11.3% in 2023 and 8.7% in 2024.
Fleetcor’s business is banking on organic growth, revenue retention, client acquisition and selling value-added products through the company’s various payment solutions. Organic growth during 2022 was 13% due to the positive impacts of growing transaction volume and beneficial macroeconomic environment.
In 2022, the company has been very active on the acquisition front. The acquisitions are expected to be meaningful and help in the company’s desired customer base expansion and further diversify its service offerings. The company has spent around $197.6 million during the year to fulfill such purposes.
Fleetcor is expected to continue its investor-friendly behaviour, repurchasing shares from time to time under the company’s repurchase program. In 2022, the company has repurchased $1.41 billion by way of repurchases.
Fleetcor is well poised with the progress in EV capabilities, with mapping and payment applications along with home charging software. Accounts payable automation software (AP) shall prove to be a great boost to the company’s AP payment execution business.
The company’s presence in multiple continents lets it tap into various new customer markets. It provides Fleetcor with cost economies and lets it acquire assets to leverage cost synergies, use new practices and launch new products. Revenues from the international business account for 38.9% of the total revenues generated in 2022.
Fleetcor's current ratio at the end of the December quarter was 1.01, lower than the 1.04 reported a year ago. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.
FLT is faced with inordinate interest rates that are posing threats to the growth of the bottom line. Interest expense has increased 45% on a year-over-year basis.
Zacks Rank and Stocks to Consider
Fleetcor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are as follows:
Omnicom Group's(OMC - Free Report) internal development initiatives and shareholder-friendly policies ensure long-term profitability. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised downward by 2.1% in the past 60 days. The consensus estimate for the full year is $7.15 per share. This has been revised upward 13.7% in the past 60 days.
For first-quarter 2023, OMC’s earnings are expected to match the year-ago reported figure of $1.39. The company’s earnings are expected to grow 3.2% on a year-over-year basis in 2023. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ICF International (ICFI - Free Report) is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6% in the past 60 days. The consensus estimate for the full year is $6.3 per share. This has been revised upward 7.3% in the past 60 days.
For first-quarter 2023, ICFI’s earnings are expected to register 7.6% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 9.2% on a year-over-year basis. The company currently carries a Zacks Rank #2 (Buy).
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Reasons Why Fleetcor (FLT) Should be Retained by Investors
Holding a Growth Score of B, Fleetcor Technologies, Inc. has performed decently in the bourses during the past six months, growing at 4.9%.
The company’s earnings for 2023 and 2024 are expected to improve 5.6% and 16.2%, respectively, year over year. Revenues are expected to increase 11.3% in 2023 and 8.7% in 2024.
FleetCor Technologies, Inc. Revenue (TTM)
FleetCor Technologies, Inc. revenue-ttm | FleetCor Technologies, Inc. Quote
Tailwinds
Fleetcor’s business is banking on organic growth, revenue retention, client acquisition and selling value-added products through the company’s various payment solutions. Organic growth during 2022 was 13% due to the positive impacts of growing transaction volume and beneficial macroeconomic environment.
In 2022, the company has been very active on the acquisition front. The acquisitions are expected to be meaningful and help in the company’s desired customer base expansion and further diversify its service offerings. The company has spent around $197.6 million during the year to fulfill such purposes.
Fleetcor is expected to continue its investor-friendly behaviour, repurchasing shares from time to time under the company’s repurchase program. In 2022, the company has repurchased $1.41 billion by way of repurchases.
Fleetcor is well poised with the progress in EV capabilities, with mapping and payment applications along with home charging software. Accounts payable automation software (AP) shall prove to be a great boost to the company’s AP payment execution business.
The company’s presence in multiple continents lets it tap into various new customer markets. It provides Fleetcor with cost economies and lets it acquire assets to leverage cost synergies, use new practices and launch new products. Revenues from the international business account for 38.9% of the total revenues generated in 2022.
FleetCor Technologies, Inc. Price
FleetCor Technologies, Inc. price | FleetCor Technologies, Inc. Quote
Some Risks
Fleetcor's current ratio at the end of the December quarter was 1.01, lower than the 1.04 reported a year ago. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.
FLT is faced with inordinate interest rates that are posing threats to the growth of the bottom line. Interest expense has increased 45% on a year-over-year basis.
Zacks Rank and Stocks to Consider
Fleetcor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are as follows:
Omnicom Group's(OMC - Free Report) internal development initiatives and shareholder-friendly policies ensure long-term profitability. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised downward by 2.1% in the past 60 days. The consensus estimate for the full year is $7.15 per share. This has been revised upward 13.7% in the past 60 days.
For first-quarter 2023, OMC’s earnings are expected to match the year-ago reported figure of $1.39. The company’s earnings are expected to grow 3.2% on a year-over-year basis in 2023. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ICF International (ICFI - Free Report) is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6% in the past 60 days. The consensus estimate for the full year is $6.3 per share. This has been revised upward 7.3% in the past 60 days.
For first-quarter 2023, ICFI’s earnings are expected to register 7.6% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 9.2% on a year-over-year basis. The company currently carries a Zacks Rank #2 (Buy).