Fleetcor Technologies (FLT) On Momo Momentum Watch Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Fleetcor Technologies ( FLT) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Fleetcor Technologies as such a stock due to the following factors:

  • FLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $159.1 million.
  • FLT has a PE ratio of 33.0.
  • FLT is currently in the upper 30% of its 1-year range.
  • FLT is in the upper 25% of its 20-day range.
  • FLT is in the upper 35% of its 5-day range.
  • FLT is currently trading above yesterday's high.
  • FLT has experienced a gap between today's open and yesterday's close of 1.8%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on FLT:

FleetCor Technologies, Inc. provides fuel cards and workforce payment products and services to businesses, commercial fleets, oil companies, petroleum marketers, and government entities in North America, Latin America, and Europe. FLT has a PE ratio of 33.0. Currently there are 2 analysts that rate Fleetcor Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Fleetcor Technologies has been 948,900 shares per day over the past 30 days. Fleetcor has a market cap of $8.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.11 and a short float of 0.4% with 0.19 days to cover. Shares are down 8% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Fleetcor Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 20.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FLEETCOR TECHNOLOGIES INC has improved earnings per share by 34.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FLEETCOR TECHNOLOGIES INC increased its bottom line by earning $2.51 versus $1.76 in the prior year. This year, the market expects an improvement in earnings ($4.03 versus $2.51).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 31.8% when compared to the same quarter one year prior, rising from $59.65 million to $78.62 million.
  • The gross profit margin for FLEETCOR TECHNOLOGIES INC is rather high; currently it is at 57.85%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.91% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 79.18% to $125.30 million when compared to the same quarter last year. In addition, FLEETCOR TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of 24.56%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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