Corpay, Inc. (CPAY), headquartered in Toronto, Canada, is a financial services company specializing in payment solutions. With a market cap of $21.59 billion and a robust presence in the global market, Corpay facilitates a range of services, including cross-border payments, currency risk management, and expense management, supporting businesses of all sizes in streamlining their financial operations worldwide.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Corpay exemplifies this, highlighting its significant scale, reliability, and impact within the global financial services industry. With its extensive range of payment solutions, Corpay continues to play a pivotal role in helping businesses manage their financial operations efficiently across international markets.
CPAY shares are trading 4% below their 52-week high of $319.94, which they hit on Mar. 25. However, the stock has gained 11.6% over the past three months, outperforming the Technology Select Sector SPDR Fund’s (XLK) 2.7% decline over the same time frame.
In the longer term, CPAY is up 8.7% on a YTD basis, and the shares have gained 11.6% over the past 52 weeks. The XLK has gained 15.6% in 2024 and 33.6% over the past year.
CPAY has been trading above its 50-day- and 200-day moving averages since early August to confirm its recent bullish trend.
Shares of Corpay surged 5.9% after the release of its better-than-expected Q2 earnings on Aug. 7. The company posted revenue of $975.7 million, which exceeded analysts' expectations of $971.7 million. Also, CPAY reported a net income of $251.60 million, or $4.55 per share, which surpassed Wall Street's expectations of $4.51 per share. CPAY expects full-year earnings between $18.85 and $19.15 per share, with revenue ranging from $3.98 billion to $4.03 billion.
Highlighting the contrast in performance, rival Block, Inc. (SQ) has underperformed CPAY, with a 12.8% decline on a YTD basis.
Given CPAY's recent outperformance compared to the XLK, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target is $327.61, suggesting a premium of 6.6% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
