Valued at a market cap of $22.9 billion, Corpay, Inc. (CPAY) is a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments. The Atlanta, Georgia-based company offers a comprehensive suite of digital payment solutions, including accounts payable automation, commercial cards, cross-border payments, and vehicle-related expense management such as fuel and toll payments.

This payments company has outpaced the broader market over the past 52 weeks. Shares of CPAY have rallied 20.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.2%. However, on a YTD basis, the stock is down 4.2%, lagging behind SPX’s 1.3% drop. 

Zooming in further, CPAY has also outperformed the Amplify Digital Payments ETF’s (IPAY) 16.3% return over the past 52 weeks. However, it has underperformed the ETF’s 4% downtick on a YTD basis. 

Shares of CPAY closed down marginally on the following day after its Q1 earnings release on May 6. Due to a rise in its corporate payments segment’s revenue, its overall revenue grew 7.5% year-over-year to $1 billion. However, the figure came in slightly below the consensus estimates due to lower vehicle and lodging payment segments revenue. On the earnings front, its adjusted EPS of $4.51 improved 10% from the year-ago quarter and exceeded Wall Street expectations of $4.49. 

Looking ahead to fiscal 2025, CPAY raised its revenue guidance to $4.4 billion to $4.5 billion, and anticipates adjusted net income per share to be between $20.80 and $21.20. 

For the current fiscal year, ending in December, analysts expect CPAY’s EPS to grow 11.8% year over year to $19.82. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion. 

Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 10 “Strong Buy,” two “Moderate Buy,” and five “Hold” ratings. 

This configuration is slightly less bullish than a month ago, with 11 analysts suggesting a “Strong Buy” rating. 

On May 7, JPMorgan Chase & Co. (JPM) analyst Jeffrey Zekauskas maintained an “Overweight” rating on CPAY but lowered its price target to $400, which indicates a 23.3% potential upside from the current levels. 

The mean price target of $393.13 represents a 21.2% premium from CPAY’s current price levels, while the Street-high price target of $445 suggests an upside potential of 37.2%.