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Why Corpay (CPAY) is a Top Growth Stock for the Long-Term
ZACKS· 2025-09-17 14:46
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score assists investors in capitalizing on price trends by examining one-week price changes and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7] - There can be over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] Company Spotlight: Corpay, Inc. - Corpay, Inc., based in Peachtree Corners, GA, is a global provider of commercial payment solutions, helping businesses automate and control payments across various regions [11] - Corpay holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating potential for growth [11] - The company is projected to achieve year-over-year earnings growth of 10.9% for the current fiscal year, with upward revisions in earnings estimates from analysts [12]
Here's Why Corpay (CPAY) is a Strong Value Stock
ZACKS· 2025-08-27 14:41
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, with A indicating the highest potential for outperformance [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - Momentum Score identifies stocks with favorable price trends and earnings outlooks, utilizing recent price changes and earnings estimate revisions [6] Integration with Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to aid in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure if earnings forecasts are declining [10] Company Spotlight: Corpay, Inc. - Corpay, Inc. is a global provider of commercial payment solutions, helping businesses automate and secure payments across various regions [11] - Currently rated 3 (Hold) by Zacks, Corpay has a VGM Score of A and a Value Style Score of B, supported by a forward P/E ratio of 15.42 [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the consensus estimate increasing by $0.09 to $21.09 per share, indicating a positive outlook for the company [12]