Atlanta, Georgia-based Corpay, Inc. (CPAY) is a global leader in corporate payments, offering solutions for expense management, cross-border payments, and commercial cards. With a market cap of $24.4 billion, Corpay simplifies financial transactions for businesses worldwide, helping them save time and reduce costs.
Companies worth $10 billion or more are generally categorized as "large-cap stocks," and Corpay fits this description perfectly. Its valuation reflects its strong presence in the payments industry, driven by innovative services and a commitment to enhancing financial efficiency for its clients.
Corpay touched its all-time high of $400.81 on Feb. 6 and is currently trading 10.7% below that peak. Meanwhile, CPAY gained 3.4% over the past three months, notably outpacing the S&P 500 Index’s ($SPX) 4.5% decline during the same time frame.
Corpay’s performance looks even more attractive over the longer term. CPAY stock has soared nearly 16% over the past six months and 18% over the past 52 weeks, outpacing SPX’s marginal 60 bps uptick over the past six months and 10.2% gains over the past year.
To confirm the bullish trend, CPAY has traded mostly above its 50-day and 200-day moving averages since mid-July last year with some notable fluctuations in the recent weeks.
Corpay’s stock prices observed a marginal uptick in the trading session after the release of its mixed Q4 results on Feb. 5. Driven by a solid 12% growth in organic revenues, the company's overall net revenues increased 10.4% year-over-year to more than $1 billion. However, the figure missed the Street’s expectations by 1.5%. Meanwhile, its adjusted EBITDA increased by a solid 12.4% year-over-year to $571.2 million. Furthermore, its adjusted net income surged 17.5% to $383.2 million and its adjusted EPS of $5.36 surpassed the consensus estimates by a notable margin.
Moreover, Corpay has also outperformed its peer PayPal Holdings, Inc.’s (PYPL) 9.4% decline over the past six months and 9.6% gains over the past 52-week period.
Among the 18 analysts covering the CPAY stock, the consensus rating is a “Moderate Buy.” Its mean price target of $415.12 suggests a 16% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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.
