FLEETCOR Technologies, Inc. FLT is currently benefiting from strong organic growth and strategic acquisitions.
The company has an expected long-term (three to five years) earnings per share growth rate of 14.2%. Its earnings are expected to register growth of 20.8% in 2022 and 9.4% in 2023.
Factors That Bode 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 second quarter of 2022.
FleetCor Technologies, Inc. Revenue (TTM)
FleetCor Technologies, Inc. revenue-ttm | FleetCor Technologies, Inc. Quote
Acquisitions have helped the company to expand its customer base, headcount and operations over time. The recent acquisition of Plugsurfing is expected to help it to expand into new customer segments with original equipment manufacturers and charge point operators. The acquisition of Accrualify is expected to strengthen the company’s portfolio of payment solutions and its corporate payments platform capabilities.
FLEETCOR has a track record of returning value through share repurchases. In 2021, 2020 and 2019, it repurchased shares worth $1.4 billion, $849.9 million and $694.9 million, respectively.
The company has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter 2022 was $2.4 billion against a long-term debt level of $4.8 billion.
Zacks Rank and Stocks to Consider
FLEETCOR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. CAR, Automatic Data Processing, Inc. ADP and CRA International, Inc. CRAI.
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has an earnings growth rate of 108.4% for 2022. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
ADP carries a Zacks Rank #2 (Buy) at present. ADP has a long-term earnings growth expectation of 12%.
ADP delivered a trailing four-quarter earnings surprise of 5%, on average.
CRA International carries a Zacks Rank of 2, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.
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