- United States
- Diversified Financial
Is Now An Opportune Moment To Examine FLEETCOR Technologies, Inc. (NYSE:FLT)?
Today we're going to take a look at the well-established FLEETCOR Technologies, Inc. (NYSE:FLT). The company's stock saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine FLEETCOR Technologies’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for FLEETCOR Technologies
What's The Opportunity In FLEETCOR Technologies?
Good news, investors! FLEETCOR Technologies is still a bargain right now. According to my valuation, the intrinsic value for the stock is $279.49, but it is currently trading at US$218 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, FLEETCOR Technologies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from FLEETCOR Technologies?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. FLEETCOR Technologies' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since FLT is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on FLT for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FLT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
So while earnings quality is important, it's equally important to consider the risks facing FLEETCOR Technologies at this point in time. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of FLEETCOR Technologies.
If you are no longer interested in FLEETCOR Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Valuation is complex, but we're helping make it simple.
Find out whether FLEETCOR Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
FLEETCOR Technologies, Inc., a business payments company that helps businesses spend less by enabling them to manage their expense-related purchasing and vendor payments processes.
Fair value with moderate growth potential.