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Reasons to Retain FLEETCOR Technologies (FLT) in Your Portfolio
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FLEETCOR Technologies, Inc. has had an impressive run on the bourses over the past three months. The stock has appreciated 11.5% against 2.4% decline of the industry it belongs to.
FLEETCOR has an expected long-term (three to five years) earnings per share growth rate of 16%. The company’s earnings are expected to register growth of 16.6% in 2022 and 14.4% in 2023.
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 17% in the fourth quarter of 2021.
Acquisitions, over time, have helped FLEETCOR expand its customer base, headcount and operations. The recent acquisition of Levarti is expected to strengthen FLEETCOR’s airline-lodging business that reserves multiple hotel rooms for global airlines’ crews and disrupted passengers, every year. Levarti’s MAX mobile apps offer passengers an end-to-end digital experience that includes check-in, on-flight contactless payments, baggage tracking and claims.
The 2021 acquisition of Associated Foreign Exchange boosts the company’s revenues in its corporate payments business.
FLEETCOR has a track record of returning value to shareholders 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 has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $2.3 billion compared with the long-term debt level of $4.5 billion.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold).
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 74.5% in the past year.
NV5 Global also carries a Zacks Rank #1. The company has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.
NV5 Global’s shares have surged 37.5% in the past year. The company has a long-term earnings growth of 14.2%.
Clean Harbors carries a Zacks Rank #2. The company has an expected earnings growth rate of 17% for the current year.
Clean Harbors pulled off a trailing four-quarter earnings surprise of 43.2%, on average. CLH’s shares have jumped 27.4% in the past year.
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Reasons to Retain FLEETCOR Technologies (FLT) in Your Portfolio
FLEETCOR Technologies, Inc. has had an impressive run on the bourses over the past three months. The stock has appreciated 11.5% against 2.4% decline of the industry it belongs to.
FLEETCOR has an expected long-term (three to five years) earnings per share growth rate of 16%. The company’s earnings are expected to register growth of 16.6% in 2022 and 14.4% in 2023.
FleetCor Technologies, Inc. Price
FleetCor Technologies, Inc. price | FleetCor Technologies, Inc. Quote
Factors That Auger 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 17% in the fourth quarter of 2021.
Acquisitions, over time, have helped FLEETCOR expand its customer base, headcount and operations. The recent acquisition of Levarti is expected to strengthen FLEETCOR’s airline-lodging business that reserves multiple hotel rooms for global airlines’ crews and disrupted passengers, every year. Levarti’s MAX mobile apps offer passengers an end-to-end digital experience that includes check-in, on-flight contactless payments, baggage tracking and claims.
The 2021 acquisition of Associated Foreign Exchange boosts the company’s revenues in its corporate payments business.
FLEETCOR has a track record of returning value to shareholders 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 has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $2.3 billion compared with the long-term debt level of $4.5 billion.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , NV5 Global (NVEE - Free Report) and Clean Harbors (CLH - Free Report) .
Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy). The company has a long-term earnings growth of 6.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 74.5% in the past year.
NV5 Global also carries a Zacks Rank #1. The company has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.
NV5 Global’s shares have surged 37.5% in the past year. The company has a long-term earnings growth of 14.2%.
Clean Harbors carries a Zacks Rank #2. The company has an expected earnings growth rate of 17% for the current year.
Clean Harbors pulled off a trailing four-quarter earnings surprise of 43.2%, on average. CLH’s shares have jumped 27.4% in the past year.