FLEETCOR Technologies, Inc. is currently benefiting from strong organic growth and strategic acquisitions.
The company has an expected long-term (three to five years) earnings per share growth rate of 16.3%. Its earnings are expected to register growth of 20.8% in 2022 and 7.4% in 2023.
Shares of FLT have jumped 12.1% in the past three-month period compared with 19.6% surge of the industry it belongs to.
Factors That Bode 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 13% in the third quarter of 2022.
Acquisitions have helped the company to expand its customer base, headcount and operations over time. The recent acquisition of Plugsurfing is expected to help FLEETCOR to expand into new customer segments with original equipment manufacturers and charge point operators. The acquisition of Accrualify is expected to strengthen the company’s portfolio of payment solutions and its corporate payments platform capabilities.
FLEETCOR has a track record of returning value 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’s current ratio (a measure of liquidity) at the end of third-quarter 2022 was pegged at 0.99, lower than the current ratio of 1.06 reported in the prior quarter. A decline in the current ratio is not a favorable development. Moreover, a current ratio of less than 1 is not desirable as it implies that the company has not enough liquid assets to cover its short-term liabilities.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and DocuSign, Inc. (DOCU - Free Report) .
Booz Allen sports a Zacks Rank #1 at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
DocuSign is currently Zacks #1 Ranked. DOCU has a long-term earnings growth expectation of 13.7%.
DOCU delivered a trailing four-quarter earnings surprise of 6.6%, on average.
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FLEETCOR Technologies, Inc. is currently benefiting from strong organic growth and strategic acquisitions.
The company has an expected long-term (three to five years) earnings per share growth rate of 16.3%. Its earnings are expected to register growth of 20.8% in 2022 and 7.4% in 2023.
Shares of FLT have jumped 12.1% in the past three-month period compared with 19.6% surge of the industry it belongs to.
Factors That Bode 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 13% in the third quarter of 2022.
Acquisitions have helped the company to expand its customer base, headcount and operations over time. The recent acquisition of Plugsurfing is expected to help FLEETCOR to expand into new customer segments with original equipment manufacturers and charge point operators. The acquisition of Accrualify is expected to strengthen the company’s portfolio of payment solutions and its corporate payments platform capabilities.
FLEETCOR has a track record of returning value 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’s current ratio (a measure of liquidity) at the end of third-quarter 2022 was pegged at 0.99, lower than the current ratio of 1.06 reported in the prior quarter. A decline in the current ratio is not a favorable development. Moreover, a current ratio of less than 1 is not desirable as it implies that the company has not enough liquid assets to cover its short-term liabilities.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and DocuSign, Inc. (DOCU - Free Report) .
Booz Allen sports a Zacks Rank #1 at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
DocuSign is currently Zacks #1 Ranked. DOCU has a long-term earnings growth expectation of 13.7%.
DOCU delivered a trailing four-quarter earnings surprise of 6.6%, on average.
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Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
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Get the latest research report on BAH - FREE
Get the latest research report on DOCU - FREE