FLEETCOR Technologies, Inc. (FLT – Free Report) is a financial transaction services stock that has performed decently over the past year and has the potential to increase momentum in the short term. If you haven’t yet enjoyed the appreciation in its stock price, it’s time to add the stock to your portfolio.
What makes it an attractive choice?
An outperforming: A look at the company’s price trend reveals that the stock has returned 11.7% in the past year, compared to a 5.3% drop in the industry it belongs to.
Solid rank: FLEETCOR currently carries a Zacks Rank # 2 (Buy). Our research shows that stocks with a Zacks Rank # 1 (Strong Buy) or 2 offer attractive investment opportunities for investors. You can see The full list of today’s Zacks # 1 Rank stocks here.
Northward estimate revisions: Seven estimates for FLEETCOR in 2021 have moved north in the past 60 days against no downward revision, reflecting analyst confidence in the company. During the same period, Zacks’ consensus estimate for 2021 rose to 2.6%.
History of positive earnings surprise: FLEETCOR has an impressive history of profit surprises. The company has beaten Zacks’ consensus estimate over the past four quarters, offering an average surprise of 6.1%.
Strong growth prospects: Zacks’ consensus estimate for 2021 earnings is currently set at $ 12.96 per share, indicating year-over-year growth of 16.9%. Profits are expected to grow 16.5% in 2022. The stock has an expected long-term growth rate in earnings per share of 15%.
Growth drivers: FLEETCOR’s turnover continues to grow organically, driven by an increase in the volume of transactions and acquisitions. In the second quarter of 2021, organic revenue growth was 23%. The company recorded $ 15 million in additional revenue from acquisitions made in 2020 and 2021. The recent acquisition of Associated Foreign Exchange has expanded the company’s cross-border payment solutions business. Another acquisition, Roger, enhances FLEETCOR’s portfolio of accounts payable automation solutions for small businesses.
The company has a habit of returning value to shareholders through share buybacks. In 2020, 2019 and 2018, it repurchased shares worth $ 849.9 million, $ 694.9 million and $ 958.7 million, respectively.
Other actions to consider
Some other stocks similarly classified in Zacks’ commercial services sector are Manpowergroup (MAN – Free report), Cross Country Health Care (CCRN – Free report) and Genpact (g – Free Report), each carrying a Zacks Rank # 2 (Buy).
The expected long-term growth rate of earnings per share (three to five years) for ManpowerGroup, Cross Country Healthcare and Genpact is set at 24.2%, 9.9% and 14.7%, respectively.