Corpay, Inc. (NYSE:CPAY) is one of the best FinTech stocks to buy in 2026. On December 8, 2025, Corpay said it completed Mastercard’s $300 million minority investment in Corpay’s cross-border business, a transaction that values that unit at roughly $13 billion. The company framed the close as the follow-through to the deal Mastercard announced earlier in 2025, which implied an equity stake of about 2.3% in the cross-border operation. Beyond the capital, the bigger strategic signal is distribution: Corpay ...

Core Insights - Corpay, Inc. (CPAY) is a payments company that specializes in managing vehicle-related expenses, lodging expenses, and corporate payments, with a market cap of $21 billion [1] - CPAY is classified as a large-cap stock, reflecting its substantial size and influence in the software infrastructure industry, driven by digital payment innovations and a diversified product offering [2] Financial Performance - CPAY's stock has experienced a decline of 22.3% from its 52-week high of $400.81, reached on February 6, while it rose 2.2% over the past three months, underperforming the Technology Select Sector SPDR Fund's (XLK) 10.1% gains [3] - Over a six-month period, CPAY shares fell 11.1%, and over the past 52 weeks, they dipped 12.8%, underperforming XLK's gains of 23.5% and 26.1%, respectively [4] - In Q3, CPAY reported an adjusted EPS of $5.70, exceeding Wall Street's expectations of $5.63, with revenue of $1.2 billion meeting forecasts [5] Market Position - CPAY's competitive edge is strengthened by its ability to integrate products with various accounting and ERP systems, enhancing its market leadership in corporate payments [2] - The stock has been trading below its 200-day moving average since early April, indicating a bearish trend, but has remained above its 50-day moving average since late November [4] Future Outlook - The company anticipates full-year adjusted EPS in the range of $21.14 to $21.34 and expects revenue between $4.51 billion and $4.53 billion [5]

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Corpay (NYSE:CPAY) Conference December 09, 2025 08:40 AM ET Company ParticipantsJohn Davis - Head of Fintech Equity ResearchPeter Walker - CFOJohn DavisGet started. Good morning. My name is John Davis. I lead the FinTech equity research effort here at Ray J. We're excited to have CPAY CFO Peter Walker with us this morning. We're just going to do a fireside chat. We'll leave some time for questions at the end. But first off, Peter, thanks for joining us.Peter WalkerYeah, great to be here on a cold morning in ...

Core Insights - Corpay (NYSE:CPAY) is currently experiencing a significant rally, having increased by approximately 20% following strong earnings reported on November 5 [1][5] - The stock is in Phase 2 of its 18 Adhishthana cycle, which suggests a bullish trend ahead [1][6] Group 1: Phase 2 Analysis - Phase 2 of the Adhishthana cycle is divided into two segments: the Move of Sankhya, characterized by a decline or consolidation, and the Move of Buddhi, marked by exponential growth [2] - Corpay entered Phase 2 in April 2025, initially experiencing a decline of about 30% during the Sankhya period before transitioning into the Move of Buddhi, which has led to a strong upward trend [4] Group 2: Earnings Impact - The earnings report released in early November coincided with the transition into the Move of Buddhi, which contributed to the sharp and sustained rally of the stock [5] - The timing of the strong earnings results amplified the bullish momentum, aligning perfectly with the favorable cycle conditions [5] Group 3: Investor Outlook - With a solid fundamental outlook and the ongoing Move of Buddhi, Corpay is expected to maintain its bullish momentum throughout the remainder of Phase 2 [6] - Investors currently holding the stock are encouraged to maintain their positions, as the market structure supports further upside potential [6]

Core Thesis - Corpay, Inc. is viewed as a "compounder on sale," with expected annual per-share earnings growth of 15-20% and potential multiple expansion to 16-20x earnings [4][7] Company Overview - Corpay, Inc. (NYSE: CPAY), formerly Fleetcor, is a leading B2B payments company that has transformed from a regional fuel card business into a global B2B payments powerhouse [2] - The company has generated approximately 19% annualized shareholder returns from 2010 to 2024 [2] Financial Performance - The company has consistently delivered around 13% annual growth in revenue, EBITDA, and EPS from 2014 to 2024 [3] - As of December 1st, CPAY's share was trading at $296.27, with trailing and forward P/E ratios of 20.13 and 12.02 respectively [1] - CPAY shares are attractively priced at approximately $330, implying a 13.5x 2026E earnings, while the intrinsic value is estimated between $400 and $490, offering a 20-33% margin of safety [4] Strategic Positioning - The company is well-positioned to benefit from secular trends in digital B2B payments, inflation-sensitive revenues, and a weakening U.S. dollar, with around 50% of revenue coming from international markets [5] - Free cash flow generation and disciplined capital allocation, including $5.6 billion in buybacks from 2020 to 2024, further support the company's upside [5] Growth Opportunities - Additional growth potential arises from CPAY's cross-border business and stablecoin adoption, which could accelerate growth [6] - The company has a strong M&A track record and aligned management, which are seen as mitigants to potential risks [7] Risks and Catalysts - Key risks include the integration of the $2.4 billion Alpha Group acquisition, regulatory compliance in cross-border payments, and pressures on legacy fuel card businesses [6] - Catalysts for upside include successful execution of the business plan, accretive M&A, capital allocation, and stablecoin adoption [7]

Core Insights - Corpay's shares have increased by approximately 7% since the last earnings report, outperforming the S&P 500 [1] - The company reported strong Q3 2025 results, with earnings per share of $5.7, exceeding estimates by 1.2% and showing a 14% year-over-year increase [2] - Total revenues reached $1.2 billion, surpassing estimates and reflecting a 13.9% increase from the previous year [2] Segment Performance - Vehicle payments generated revenues of $553.2 million, a 9% increase year-over-year, exceeding estimates [3] - Corporate payments revenues amounted to $409.7 million, up 27% year-over-year, also surpassing estimates [4] - Lodging payments saw a decline, with revenues of $127 million, down 5% from the previous year, missing projections [4] Financial Metrics - EBITDA rose by 12.5% year-over-year to $627.5 million, though it fell short of estimates [5] - The EBITDA margin was reported at 57.7%, a slight decrease of 10 basis points from the previous year [5] Balance Sheet and Cash Flow - Corpay ended Q3 2025 with cash and cash equivalents of $2 billion, down from $2.2 billion in Q2 2025 [6] - Long-term debt decreased to $5.8 billion from $5.9 billion in the previous quarter [6] - The company utilized $378.9 million in cash from operating activities during the quarter [6] Future Outlook - Revenue guidance for 2025 has been raised to $4.51-$4.53 billion, up from the previous estimate of $4.41-$4.49 billion [7] - Adjusted net income per diluted share guidance was also increased to $21.14-$21.34 from $20.86-$21.26 [7] Market Position - Corpay has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [11] - The stock has a poor Growth Score of F, a Momentum Score of D, and a Value Score of B, placing it in the top 40% for value investors [10]

Upgrades - Rubrik (RBRK) upgraded to Outperform from Market Perform due to "stellar beat-and-raise results" and ongoing share gains in the cyber-resilience market [2] - Corpay (CPAY) upgraded to Outperform from Perform with a price target of $380, as shares offer "growth at a discount" [2] - Humana (HUM) upgraded to Buy from Hold with a price target increased to $313 from $253, following an analysis of the company's Stars diversification effort [2] - Unity (U) upgraded to Overweight from Equal Weight with a price target raised to $51 from $42, based on a positive outlook for the mobile game advertising industry in 2026 [3] - Dollar General (DG) upgraded to Buy from Accumulate with a price target of $140, noting strong traffic growth compared to Dollar Tree (DLTR) [3] Downgrades - Argan (AGX) downgraded to Hold from Buy with a price target raised to $325 from $260, citing a top-tier valuation despite strong execution and a $3B backlog [4] - AIG (AIG) downgraded to Equal Weight from Overweight with a price target reduced to $88 from $95, due to limited attractive growth opportunities in the current pricing environment [4] - Synchrony (SYF) downgraded to Neutral from Outperform with an unchanged price target of $82, as lower end consumer exposure makes shares less appealing after a recent rally [4] - Parsons (PSN) double downgraded to Market Perform from Strong Buy without a price target, following the FAA's decision to award a significant contract to Peraton [4] - Kosmos (KOS) double downgraded to Underperform from Buy with a price target lowered to $1 from $3.40, after cutting brent oil price forecasts for 2026 and 2027 to $60 and $62 per barrel respectively [4]

Group 1 - Corpay, Inc. will attend the Raymond James TMT and Consumer Conference on December 9, 2025, in New York, NY, with management participating in a fireside chat at 8:40 AM ET [1] - Investors can access the presentation through the Company's investor relations website [1] Group 2 - Corpay, Inc. is a global S&P 500 corporate payments company that simplifies expense payments for businesses and consumers [2] - The company offers a suite of modern payment solutions that help manage vehicle-related expenses, travel expenses, and payables, resulting in time savings and reduced spending for customers [2] - Corpay Cross-Border refers to a group of legal entities owned and operated by Corpay, Inc. [2]

Group 1 - The company is currently in the budgeting process, referred to as the annual budget beat down season, aiming for 9% to 11% organic growth [1] - Vehicle payments constitute roughly half of the company's operations and are expected to grow at double-digit rates [2] - The core payments segment is targeted to grow in the mid- to high teens, contributing to the overall growth plan [2]