Here's How FLEETCOR's (FLT) Shares Rose 39.4% Year to Date
FLEETCOR Technologies FLT gained 39.4% in the year-to-date period, outperforming its industry’s 16.7% growth in the said time frame. The S&P 500 Composite gained 19.1% during the same time.
What’s Driving the Surge?
The company's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the same in one, delivering an average surprise of 1.64%.
FleetCor Technologies, Inc. Price and EPS Surprise
FleetCor Technologies, Inc. price-eps-surprise | FleetCor Technologies, Inc. Quote
FLEETCOR's acquisitions have been making a substantial impact on its revenue growth. The company acquired PayByPhone, a global digital parking payment solutions provider, thereby expanding its vehicle payment solutions for B2B fleet customers in North America and Europe. The move also establishes a consumer vehicle payments business in the U.K., leveraging PayByPhone's 2 million active monthly users.
FLT aims to unify payment products through a mobile app strategy, reflecting success in Brazil. The acquisition, effective Sep 15, 2023, is part of the company's broader strategy, which includes recent acquisitions of Global Reach Group, Mina Digital Limited and Business Gateway AG, contributing to a projected 10% YoY revenue growth in 2023.
Partnerships and collaborations have been boosting the company’s revenue performance. Reveel, in collaboration with Corpay, a FLEETCOR company, has recently enhanced financial management for businesses. The joint solution integrates Reveel's parcel spend management tools with Corpay Payments Automation, enabling streamlined expenses, optimized costs, compliance assurance, real-time data-driven decisions, simplified workflows, scalable operations and excellent customer support.
Additionally, Corpay's Cross-Border business has partnered with Cirque du Soleil, AC Milan, Aston Villa Football Club and World Triathlon, serving as the Official Foreign Exchange partner, thereby providing innovative solutions for currency risk management and global payments.
Product launches have been aiding FLEETCOR. Corpay’s Cross-Border business recently unveiled Risk Visualizer, transforming foreign exchange risk management for informed hedging decisions. Additionally, Payments GPS, leveraging SWIFT GPI, offers real-time payment tracking with a user-friendly interface. The launch of Netting Manager streamlines global subsidiaries' internal invoice settlement, enhancing efficiency, reducing costs and providing visibility into consolidated foreign exchange exposures.
FLEETCOR’s current ratio (a measure of liquidity) at the end of third-quarter 2023 was pegged at 1.02, higher than the current ratio of 0.99 reported in the year-ago quarter. Increasing current ratio indicates that the company may not have problems meeting its short-term debt obligations.
FLT currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Here are a few better-ranked stocks from the Business Services sector:
Gartner IT: TheZacks Consensus Estimate of Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure while earnings are expected to decline 1.9%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.4%.
IT sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FTI Consulting FCN: The Zacks Consensus Estimate of FCN’s 2023 revenues indicates 12.1% growth from the year-ago figure while earnings are expected to grow 3.4%. The company's earnings beat the consensus estimate in three of the trailing four quarters and missed the same in one, delivering an average surprise of 8.5%.
FCN holds a Zacks Rank #2 (Buy) at present.
Broadridge Financial Solutions BR: The Zacks Consensus Estimate of Broadridge’s 2023 revenues indicates 7.7% growth from the year-ago figure while earnings are expected to grow 10.1%. The company's earnings beat estimates in three of the trailing four quarters and met the same in one, delivering an average surprise of 5.4%.
BR holds a Zacks Rank of 2 at present.
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