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Reasons to Retain FLEETCOR Technologies (FLT) in Your Portfolio

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·2 min read
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FLEETCOR Technologies, Inc. FLT is currently benefiting from strong sales, robust retention levels and healthy same-store sales.

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 18.6% in 2022 and 11.9% in 2023.

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 15% in the first quarter of 2022.

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, which reserves multiple hotel rooms for global airlines’ crews and disrupted passengers every year. Levarti’s MAX mobile appsoffer passengers an end-to-end digital experience from 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 first-quarter 2022 was $2.1 billion compared with long-term debt level of $4.4 billion.

The stock has deppreciated 19.3% over the past year compared with 34.6% decline of the industry it belongs to.

FleetCor Technologies, Inc. Price

FleetCor Technologies, Inc. Price
FleetCor Technologies, Inc. Price

FleetCor Technologies, Inc. price | FleetCor Technologies, Inc. Quote

Zacks Rank and Stocks to Consider

FLEETCOR currently carries a Zacks Rank #3 (Hold).

A couple of top-ranked stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare CCRN and Gartner IT, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cross Country Healthcare has an expected earnings growth rate of 49.4% for the current year. It has a trailing four-quarter earnings surprise of 29.2%, on average.

CCRN has a long-term earnings growth rate of 6.9%. Shares have surged 4.3% in the past year.

Gartner’s shares have surged 6.4% in the past year. The company delivered a trailing four-quarter earnings surprise of 24.2%, on average.

The Zacks Consensus Estimate for IT’s earnings in the current year has moved up 8.6% in the past 30 days.


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