Corpay, Inc. CPAY has seen an impressive 22% stock price surge over the past six months, outperforming the industry’s 14% rally.

The company has been actively pursuing strategic acquisitions and investments to expand its customer base, workforce and operational capabilities, fueling its growth trajectory.

What’s Driving CPAY’s Success?

Corpay’s revenue growth remains strong, fueled by increasing payment program volumes and solid sales performance. Organic revenue growth has been consistent, with rates of 10% or higher annually from 2019 through 2023. This steady progress reflects its focus on customer retention and robust business initiatives.

The company has also made notable acquisitions to broaden its product portfolio and geographic reach. In September 2023, Corpay acquired PayByPhone, enhancing vehicle payment solutions for B2B fleet customers across North America and Europe. Other significant 2023 acquisitions include Global Reach Group, Mina Digital Limited and Business Gateway AG, which strengthened CPAY’s position in the global payment services market.

Corpay’s commitment to shareholder value is evident in its consistent share repurchase program. Between 2020 and 2023, the company bought back $4.31 billion worth of shares, reflecting confidence in its operations and dedication to rewarding investors.

With an expected long-term EPS growth rate of 14.3% and projected earnings growth of 12.2% in 2024 and 15.8% in 2025, Corpay appears poised for continued success.

Zacks Rank and Stocks to Consider

CPAY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader Zacks Business Services sector are Fiserv FI and Paychex PAYX, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fiserv has a long-term earnings growth expectation of 14.9%. FI delivered a trailing four-quarter earnings surprise of 3.1%, on average.

Paychex has a long-term earnings growth expectation of 7.3%. PAYX delivered a trailing four-quarter earnings surprise of 1.7%, on average.

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