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Corpay Stock Gains 58% in a Year: Here's What You Should Know

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Corpay, Inc. (CPAY - Free Report) has had an impressive run over the past year. Shares have gained 58% compared with the 30.5% rally of the industry.

The company has an expected long-term (three to five years) earnings per share growth rate of 14.3%. Its earnings are expected to register growth of 12.3% in 2024 and 16% in 2025.

Factors Behind CPAY’s Rally

Corpay’s top line continues to grow organically, driven by increased volume in its payment programs. The company continues to witness solid organic revenue growth, driven by sales, improving retention and business initiatives. Notably, organic revenue growth was 10%, 13%, 12%, 11%, and 10%, respectively, in 2023, 2022, 2021, 2020 and 2019.

CPAY has been consistently pursuing acquisitions and investments, both domestically in the United States and globally, to increase its customer base, workforce, and operational capabilities and expand its range of services across various industries. The September 2023 acquisition of PayByPhone expanded the company’s vehicle payment solutions for B2B fleet customers in North America and Europe. In 2023, it acquired Global Reach Group, Mina Digital Limited and Business Gateway AG. These acquisitions marked a significant expansion of CPAY’s product portfolio and geographic presence.

CPAY has a consistent track record of share repurchase. In 2023, 2022, 2021 and 2020, the company repurchased shares worth $686.9 million, $1.41 billion, $1.36 billion and $849.9 million, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.

Zacks Rank and Stocks to Consider

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

A couple of better-ranked stocks from the broader Zacks Business Services sector are AppLovin (APP - Free Report) and Qifu Technology, Inc. (QFIN - Free Report) .

AppLovin flaunts a Zacks Rank of 1 (Strong Buy) at present. It has a long-term earnings growth expectation of 20%. You can see the complete list of today’s Zacks #1 Rank stocks here.

APP delivered a trailing four-quarter earnings surprise of 26.2%, on average.

Qifu Technology sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 14.5%. QFIN delivered a trailing four-quarter earnings surprise of 12.4%, on average.


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