Georgia-based Corpay, Inc. (CPAY) is a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments. Valued at a market cap of $26.5 billion, the company serves businesses, merchants, consumers, and payment network customers.
Shares of this payment service provider have significantly outpaced the broader market over the past 52 weeks. CPAY has rallied 64.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 31.8%. Moreover, on a YTD basis, the stock is up 34.7%, compared to SPX’s 25.8% gains.
Zooming in further, CPAY’s outperformance becomes more evident when compared to the Technology Select Sector SPDR Fund’s (XLK) 25.6% gain over the past 52 weeks and 20.3% return on a YTD basis.
Shares of CPAY gained 5.6% after its Q3 earnings release on Nov. 7. The company’s revenue increased 6% from a year ago to $1.03 billion and came in line with the consensus estimates. Its adjusted earnings of $5 per share climbed 11.3% annually and slightly surpassed the Wall Street estimates of $4.98. CPAY primarily benefited from strong growth in its Corporate Payments segment.
For the current fiscal year, ending in December, analysts expect CPAY’s EPS to grow 13.3% year over year to $17.86. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in each of the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 10 “Strong Buy,” two “Moderate Buy,” and six “Hold” ratings.
The configuration is slightly less bullish than three months ago, with 11 analysts suggesting a “Strong Buy.”
On Nov. 14, Citi maintained a “Buy” rating on CPAY and raised its price target to $430, which indicates a 13% upside potential from the current levels.
The mean price target of $389.38 represents a slight 2.3% upside from CPAY’s current price levels, while the Street-high price target of $440 suggests a modest upside potential of 15.6%.
