The shares of this commercial payment company were just upgraded by Goldman Sachs to ‘Buy’.
FleetCor Technologies, Inc. (FLT)
From Dow Theory Forecasts
FleetCor Technologies, Inc. (FLT) is being added to the Buy and Long-Term Buy lists. FleetCor handles payments made between businesses over both its own network and third party networks. About 45% of its sales come from fuel cards, used by government agencies and companies
that operate vehicle fleets.
The U.S. generated 61% of FleetCor’s revenue for the 12 months ended March; other major markets are Brazil (16%) and the U.K. (11%). The company is producing solid growth, with per-share profits jumping 18% in the 12 months ended March, while sales rose 7% and operating cash flow 21%.
In April, management raised its 2019 profit guidance, now implying 9% to 12% growth, and reaffirmed its target for organic sales growth at 9% to 11%.
Although FleetCor earns a Quadrix® Value score of just 37, its shares trade 32% below their own five-year median trailing P/E ratio and in line with the median S&P 1500 data processing stock relative to estimated 2019 profits.
Richard Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, June 10, 2019