Atlanta, Georgia-based Corpay, Inc. (CPAY) is a payments company that simplifies how businesses pay expenses and manage financial workflows. Valued at a market cap of $21.6 billion, the company operates across multiple payment categories, including fuel and fleet payments, lodging solutions, corporate and vendor payments, and cross-border payments.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and CPAY fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software - infrastructure industry. The company’s specialty lies in automating and streamlining complex business payment workflows, enabling clients to control costs, gain transparency, and enhance cash flow management. It is uniquely positioned to benefit from the ongoing shift toward digital payments and accounts payable automation across industries.
Despite its notable strength, this payments solution provider has dipped 23.8% from its 52-week high of $400.81, reached on Feb. 6. Moreover, shares of CPAY have declined 2.9% over the past three months, underperforming the Dow Jones Industrial Average’s ($DOWI) 9.4% return during the same time frame.
In the longer term, CPAY has dropped marginally over the past 52 weeks, lagging behind DOWI's 11.2% uptick over the same time period. Moreover, on a YTD basis, shares of CPAY are down 9.8%, compared to DOWI’s 8.5% surge.
To confirm its bearish trend, CPAY has been trading below its 200-day moving average since early April, with slight fluctuations, and has remained below its 50-day moving average since early March, with some fluctuations.
On Aug. 6, Corpay released its Q2 results, and its shares plunged 3.4% in the following trading session. Primarily due to strong growth in its corporate payments segment, the company's revenue grew 12.9% year-over-year to $1.1 billion, while its adjusted EPS improved 12.7% from the year-ago quarter to $5.13. That said, both metrics aligned with the consensus estimates.
CPAY has outpaced its rival, Global Payments Inc. (GPN), which declined 22.6% over the past 52 weeks and 23.2% on a YTD basis.
Despite CPAY’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 15 analysts covering it, and the mean price target of $385.42 suggests a 26.3% premium to its current price levels.
