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Trade of the Day: FleetCor Technologies (FLT)

This stock’s growth potential makes it stand out among its peers


The market is on a bullish path, and every stock I’m buying right now has got to be a leader in its field and have superior fundamentals and technicals. I want to squeeze every drop out of the current market strength — and my pick for today’s trade, FleetCor Technologies (FLT), is one that I expect will outpace the market in the days, weeks and probably months to come.

FleetCor 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. It’s not as exciting as fracking or biotech companies, but it’s a profitable one.

Strong Growth Potential

FleetCor has been on an acquisition run in the past year and has made smart buys, as sales are expected to rise 23% in the coming quarter, with earnings expected to rise 25%. FLT’s peers, on the other hand, are headed toward -92% earnings growth for the coming quarter.

By all measures I watch, FLT is currently outperforming both its industry (Business Services) and sector (Consumer Discretionary). The sector and industry are in technical bull mode, and there was very good insider buying six months ago; this provides strength in price appreciation for FLT shares.

FleetCor’s stock is steadily growing, and the average daily trading volume over the past 12 months is about 1 million shares per day. I also like that the company has strong institutional ownership, at about 80% of outstanding shares.

Compelling Technical and Fundamental Grades

Looking at our trusty Turner Analytics chart below, both the fundamental and technical scores are signaling that Fleetcor is a solid buy. The technicals score 95 out of 100, which means that the stock is a technical “Buy.” The fundamentals score 67 out of 100, indicating that the stock rates as “Strongly Bullish.”

I’m highly impressed with FLT’s time-cycle forecast, which shows that the trade is in bull mode for the next 90 days.

Click to Enlarge

I also love the fact that the expected move for Fleetcor is $9.18, or about 7%. This means that the stock’s trend has medium volatility, and that even though there’s some slight risk, there’s also the potential for sizable profit, especially in this kind of bull market.

I recommend entering Fleetcore at $134 and setting a stop limit at $122.11.

Mike Turner is an engineer turned entrepreneur with more than 20 years’ experience in systems development and enterprise-level software applications and 15+ years in finance and stock market strategies. He is the founder of Signal Investor and Turner Analytics.

Mike’s background in finance, computer science and engineering provide a solid foundation for Signal Investor’s rule based trading approach. Turner Analytics provide members with access to the software Mike created and uses to make his stock, option and trading recommendations. Click here to get Mike’s unique take on stocks through technical and fundamental analysis.

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