Corpay Stock Jumps 25% in a Year: Here's What You Should Know
Corpay, Inc. CPAY has had a remarkable run over the past year. The company's shares have gained 25% in that period compared with its industry and the Zacks S&P 500 composite's growth of 25.6% and 13.6%, respectively.
Corpay, Inc. Price
CPAY's revenues are expected to rise 11.3% year over year in 2025 and 10.6% in 2026. Its earnings are estimated to increase 10.4% in 2025 and 16% in 2026.
CPAY Raised 2025 Top-Line Outlook
For 2025, Corpayraised the revenue guidance to $4.38-$4.46 billion from the preceding quarter's view of $4.35-$4.45 billion. This is a continuous improvement from the third quarter of 2024, wherein the company expected the top line to be $3.98-$4.01 billion. Such a gradual increment boosted investors' confidence.
Corpay's Organic Revenue Growth Looks Promising
In 2022, 2023 and 2024, CPAY's organic revenues increased 13%, 10% and 20%, respectively. Despite a marginal slowdown in 2023, the company's organic revenues skyrocketed in 2024, fueled by increased volume and revenues per transaction in its payment programs. Such results indicate the company's effective strategy to maintain healthy demand for its services. This leads to an increase in confidence among existing and potential investors, making the stock more appealing.
CPAY's Multi-Channel Approach Aids Customer-Base Expansion
Corpay leverages a multi-channel approach to market and sell solutions to current and prospective clients. This go-to-market strategy involves a comprehensive digital channel, direct sales forces and strategic partner relationships. The company expands online continuously, with end-to-end capabilities, wherein customers can buy, onboard and manage their accounts on their own. CPAY's salespeople have become more efficient by improving their efforts via digitally sourced leads utilizing this omnichannel approach.
Corpay's Consistent Buyout Strategy
CPAY acquires companies both in the United States and on a global scale to expand its customer base, workforce and operational capabilities. It also expands an array of services across various industries.
In December 2024, the company acquired GPS Capital Markets, which expanded its corporate payments business. In September 2023, Corpay acquired PayByPhone, a global digital parking payment solutions provider, which expanded its vehicle payment solutions for B2B fleet customers in North America and Europe.
Notable acquisitions include Global Reach Group, Mina Digital Limited and Business Gateway AG, which marked a significant expansion of Corpay's product portfolio and geographic presence.
CPAY's Zacks Rank & Stocks to Consider
Corpay carries a Zacks Rank #3 (Hold) at present.
Investors interested in the Zacks Business Services sector may look at some better-ranked stocks like Amadeus IT Group AMADY and AppLovin APP, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Amadeus IT Group has a long-term earnings growth expectation of 7.7%. AMADY delivered a trailing four-quarter earnings surprise of 7.4%, on average.
AppLovin has a long-term earnings growth expectation of 20%. APP delivered a trailing four-quarter earnings surprise of 22.9%, on average.
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AppLovin Corporation (APP): Free Stock Analysis Report
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