Fleetcor Technologies (FLT) Falls Further As It's Water-Logged And Getting Wetter

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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $95.6 million.
  • FLT has traded 189,120 shares today.
  • FLT traded in a range 208.4% of the normal price range with a price range of $6.54.
  • FLT traded below its daily resistance level (quality: 31 days, meaning that the stock is crossing a resistance level set by the last 31 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on FLT:

FleetCor Technologies, Inc. provides fuel cards and workforce payment products and services in North America, Latin America, Europe, Australia, and New Zealand. FLT has a PE ratio of 40.6. 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 697,800 shares per day over the past 30 days. Fleetcor has a market cap of $13.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.26 and a short float of 0.8% with 1.76 days to cover. Shares are up 32.5% 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 31.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FLEETCOR TECHNOLOGIES INC has improved earnings per share by 19.4% 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 $3.37 versus $2.51 in the prior year. This year, the market expects an improvement in earnings ($5.11 versus $3.37).
  • 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 21.5% when compared to the same quarter one year prior, going from $78.62 million to $95.51 million.
  • Net operating cash flow has increased to $159.77 million or 27.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.61%.
  • The gross profit margin for FLEETCOR TECHNOLOGIES INC is rather high; currently it is at 57.09%. Regardless of FLT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FLT's net profit margin of 32.34% significantly outperformed against the industry.

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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