Corpay (CPAY) Surges 3.8%: Is This an Indication of Further Gains?
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Corpay (CPAY) shares soared 3.8% in the last trading session to close at $331. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.7% gain over the past four weeks.
The stock is benefiting from organic growth of the company's Corporate Payment business segment. Exceptional performances in Brazil and the international fleet business drove the top line.
This provider of fuel card and payment products for businesses is expected to post quarterly earnings of $4.96 per share in its upcoming report, which represents a year-over-year change of +10.5%. Revenues are expected to be $1.03 billion, up 5.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Corpay, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CPAY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Corpay belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Bread Financial Holdings (BFH), closed the last trading session 2.5% higher at $48.34. Over the past month, BFH has returned -16.8%.
Bread Financial's consensus EPS estimate for the upcoming report has changed -11.5% over the past month to $1.89. Compared to the company's year-ago EPS, this represents a change of -45.4%. Bread Financial currently boasts a Zacks Rank of #3 (Hold).
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Corpay, Inc. (CPAY) : Free Stock Analysis Report
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