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Here's Why You Should Hold FLEETCOR Technologies (FLT) Now
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FLEETCOR Technologies, Inc. has an expected long-term (three to five years) earnings per share growth rate of 14%. Moreover, its earnings are expected to register 11.8% growth in 2021 and 17.5% growth in 2022.
In the past year, shares of FLEETCOR have increased 20.4% compared with 26.2% rise of the industry it belongs to.
Factors Driving FLEETCOR
Acquisitions are contributing significantly to FLEETCOR’s top line. It has been continuously acquiring and investing in companies in the United States as well as internationally, to expand customer base, headcount and operations. The company also intends to diversify its service offerings across industries. The recently-announced acquisition of Roger, a global accounts payable cloud software platform, is expected to boost FLEETCOR’s portfolio of accounts payable automation solutions to small businesses, helping them automate their manual payment processes.
The company’s organic revenues are expected to be in good shape with expected growth in the range of 9-13% for 2021.
Risks Associated
FLEETCOR has a debt-laden balance sheet. Total debt at the end of fourth-quarter 2020 was $3.63 billion, while the company’s cash and cash equivalent of $1.47 billion at the end of the fourth quarter was well below this debt level, underscoring that the company doesn’t have enough cash to meet this debt burden. Nevertheless, the cash level can meet the short-term debt of $646 million.
Further, the company's total debt to total capital ratio of 0.48 is higher than the industry’s 0.38. An increase in debt to capitalization ratio indicates higher risk of insolvency in challenging times.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share (three to five years) growth rate for The Interpublic Group of Companies, NV5 Global and TeleTech is pegged at 2.4%, 16.9% and 14.7%, respectively.
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With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
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Here's Why You Should Hold FLEETCOR Technologies (FLT) Now
FLEETCOR Technologies, Inc. has an expected long-term (three to five years) earnings per share growth rate of 14%. Moreover, its earnings are expected to register 11.8% growth in 2021 and 17.5% growth in 2022.
In the past year, shares of FLEETCOR have increased 20.4% compared with 26.2% rise of the industry it belongs to.
Factors Driving FLEETCOR
Acquisitions are contributing significantly to FLEETCOR’s top line. It has been continuously acquiring and investing in companies in the United States as well as internationally, to expand customer base, headcount and operations. The company also intends to diversify its service offerings across industries. The recently-announced acquisition of Roger, a global accounts payable cloud software platform, is expected to boost FLEETCOR’s portfolio of accounts payable automation solutions to small businesses, helping them automate their manual payment processes.
The company’s organic revenues are expected to be in good shape with expected growth in the range of 9-13% for 2021.
Risks Associated
FLEETCOR has a debt-laden balance sheet. Total debt at the end of fourth-quarter 2020 was $3.63 billion, while the company’s cash and cash equivalent of $1.47 billion at the end of the fourth quarter was well below this debt level, underscoring that the company doesn’t have enough cash to meet this debt burden. Nevertheless, the cash level can meet the short-term debt of $646 million.
Further, the company's total debt to total capital ratio of 0.48 is higher than the industry’s 0.38. An increase in debt to capitalization ratio indicates higher risk of insolvency in challenging times.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold).
Some better-ranked service stocks are The Interpublic Group of Companies, Inc. (IPG - Free Report) , NV5 Global (NVEE - Free Report) and TeleTech Holdings (TTEC - Free Report) . The Interpublic Group of Companies and NV5 Global carry a Zacks Rank #2 (Buy), while TeleTech sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for The Interpublic Group of Companies, NV5 Global and TeleTech is pegged at 2.4%, 16.9% and 14.7%, respectively.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
??? Smartest stock for 5G telecom
??? Safest investment in 5G hardware
??? Single best 5G buy of all!
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