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5 Reasons to Invest in FLEETCOR Technologies (FLT) Stock

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FLEETCOR Technologies, Inc. , a financial transaction services company, performed well over the past three months and has the potential to carry the momentum forward. Therefore, if you have not taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

Let’s take a look at factors that make the stock an attractive pick.

Share Price Performance: A glimpse of the company’s share price trend reveals that the stock has had an impressive run on the bourse in the past three months. FLEETCOR has gained 11% compared with the 4.3 % rally of the industry it belongs to.

Solid Rank: FLEETCOR carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 or #2 (Buy) offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Positive Earnings Surprise History: FLEETCOR has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate for earnings in all of the trailing four quarters, delivering an average beat of 5%.

FleetCor Technologies, Inc. Price and EPS Surprise

Solid Prospects: The  consensus estimate for 2021 earnings is pegged at $12.69, reflecting year-over-year growth of 16.5%. The stock has a long-term expected earnings growth rate of 9%.

Growth Factors: 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 its customer base, headcount and operations, and diversify 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.

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.

Other Stocks to Consider

Some other stocks in the broader Zacks Business Services sector are ManpowerGroup (MAN - Free Report) ,FactSet Research (FDS - Free Report) and Cross Country Healthcare (CCRN - Free Report) , each carrying the same Zacks Rank as Fleetcor.

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, FactSet and Cross Country Healthcare is 3.5%, 8.5% and 12%, respectively.

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