FLEETCOR (FLT) Rises 40% in a Year: What You Should Know
FLEETCOR Technologies, Inc. FLT shares have had an impressive run over the past year. The stock has rallied 39.6%, significantly outperforming the 18.7% rise of the industry it belongs to and the 14.2% increase of the Zacks S&P 500 composite.
Factors Behind the Surge
FLT has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average beat of 1.9%.
FleetCor Technologies, Inc. Price
FleetCor Technologies, Inc. price | FleetCor Technologies, Inc. Quote
FLEETCOR’s top line remains healthy, driven by both organic and inorganic growth. Revenues grew 10% organically in the second quarter of 2023, driven by an increase in transaction volumes and new sales growth. Acquisitions completed in 2022 and 2023 contributed around $19 million to the top line in the quarter.
The recent acquisition of U.K.-based cross-border payments provider, Global Reach Group, has strengthened FLEETCOR’s global position as a non-bank cross-border provider by increasing its scale of payments. Another acquisition, Mina, a cloud-based electric vehicle charging software platform, provided FLEETCOR a home-charging software solution for commercial fleets in the U.K.
The company has a consistent track record of share repurchases. In 2022, 2021, 2020 and 2019, it repurchased shares worth $1.41 billion, $1.36 billion, $849.9 million and $694.9 million, respectively. Such moves not only instill investors’ confidence but also positively impact earnings per share.
Estimate Revisions
The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. One estimate for 2023 has moved north over the past 30 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2023 earnings has climbed 0.2%.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics VRSK beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data ADP currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 8.4% and 11.1%, respectively.
Broadridge BR currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once, and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings suggests growth of 9.3% and 8.8%, respectively.
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FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report
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