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Here's Why Investors Should Hold on to FLEETCOR (FLT) Stock
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Shares of FLEETCOR Technologies, Inc. have gained 10.8% over the past three months, significantly outperforming the 3.5% rally of the industry it belongs to and 6.8% growth of the Zacks S&P 500 composite.
The company has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
Factors That Bode Well
FLEETCOR is consistent in rewarding its shareholders through share repurchases. In 2019, 2018 and 2017, the company had repurchased shares worth $694.9 million, $958.7 million and $402.4 million, respectively. Such moves not only instill investors’ confidence but also positively impact earnings per share.
Acquisitions are contributing significantly to FLEETCOR’s top line. The company has been continuously acquiring and investing in companies both in the United States as well as internationally, in order to expand customer base, headcount and operations, and diversify its service offerings across industries. The recently announced acquisition of Associated Foreign Exchange, a cross-border payment solutions provider, is expected to boost the company’s corporate payments line of business and its position as one of the major business payments companies in the world.
Some Risks
FLEETCOR’s total debt at the end of third-quarter 2020 was $3.81 billion, higher than $3.79 billion at the end of the prior quarter. The company's total debt to total capitalization ratio of 0.52 is higher than the industry’s 0.32. A high debt to capitalization ratio indicates higher risk of insolvency in challenging times.
Further, the company’s cash and cash equivalent of $1.37 billion at the end of the third quarter was well below this debt level, underscoring that the company doesn’t have enough cash to meet this debt burden. The cash level, however, can meet the short-term debt of $646 million.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold).
Long-term earnings (three to five years) growth rate for Republic Services, Gartner and Insperity is estimated at 9.4%, 13.5% and 15%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Here's Why Investors Should Hold on to FLEETCOR (FLT) Stock
Shares of FLEETCOR Technologies, Inc. have gained 10.8% over the past three months, significantly outperforming the 3.5% rally of the industry it belongs to and 6.8% growth of the Zacks S&P 500 composite.
The company has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
Factors That Bode Well
FLEETCOR is consistent in rewarding its shareholders through share repurchases. In 2019, 2018 and 2017, the company had repurchased shares worth $694.9 million, $958.7 million and $402.4 million, respectively. Such moves not only instill investors’ confidence but also positively impact earnings per share.
Acquisitions are contributing significantly to FLEETCOR’s top line. The company has been continuously acquiring and investing in companies both in the United States as well as internationally, in order to expand customer base, headcount and operations, and diversify its service offerings across industries. The recently announced acquisition of Associated Foreign Exchange, a cross-border payment solutions provider, is expected to boost the company’s corporate payments line of business and its position as one of the major business payments companies in the world.
Some Risks
FLEETCOR’s total debt at the end of third-quarter 2020 was $3.81 billion, higher than $3.79 billion at the end of the prior quarter. The company's total debt to total capitalization ratio of 0.52 is higher than the industry’s 0.32. A high debt to capitalization ratio indicates higher risk of insolvency in challenging times.
Further, the company’s cash and cash equivalent of $1.37 billion at the end of the third quarter was well below this debt level, underscoring that the company doesn’t have enough cash to meet this debt burden. The cash level, however, can meet the short-term debt of $646 million.
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 Republic Services (RSG - Free Report) , Gartner (IT - Free Report) and Insperity (NSP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Long-term earnings (three to five years) growth rate for Republic Services, Gartner and Insperity is estimated at 9.4%, 13.5% and 15%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>