FleetCor is a fintech game to buy and keep

CNBC's Jim Cramer suggested on Wednesday that investors should try their luck on FleetCor and be patient because the financial technology game could prove to be a "great investment".

FleetCor, the Georgia-based labor payment provider, is making more than $ 25 a share from its peak in May and is trading at 19 times the estimated earnings for 2020. At around $ 251 per share Cramer said it was cheap considering its growth rate.

"FleetCor has a great long-term story, and the fintech stock is very hot," said the animator of "Mad Money." "The stock could go back a little bit further.I think you have to be ready to buy it down, especially if the price of oil keeps going down."

FleetCor is one of the most "boring" names in financial technology, Cramer said. But all fintech space is too hot to be ignored. The company went public in 2010 at $ 23 per share and grew by more than 35% in 2019, placing it among the top 30 performers in the S & P 500.

Cramer recommended the stock in 2014, but regrets not having sounded the alarm since then. FleetCor now manages payment cards for gasoline, toll and lodging, as well as general accounts payable, to give businesses an effective way to transfer money between them, he said. declared.

Since 2002, FleetCor has put in place a "tremendous buying strategy" of integrating 75 companies and commercial account portfolios to become the leading player in the industry, Cramer said. This gives it a wingspan, which is important in the payments industry, he added.

"The payments industry is a fabulous long-term growth story, so a company that continues to buy other payment games will be a huge winner" in a space where many companies still manage their transactions by check, did he declare. "The idea of ​​FleetCor is that you can fire all those people and save a lot of money."

In May, FleetCor announced organic growth of 11% in sales while increasing sales and profit forecasts. But Cramer said that there were reasons to avoid actions for the moment.

Many of FleetCor's customers are trucking companies, a sector that is doing better in a strong global economy. Cramer pointed out that about 45% of his income came from his fuel card business. The price of oil has dropped, and that's when the stock tends to be hammered, he added.

"In the event of an economic downturn, shipments and business travel are lower, and the FleetCor payment network will only gradually increase its business," he said.

Goldman Sachs, however, pbaded FleetCor from neutral to buyer and raised its price target to $ 30, he noted.

"FleetCor is a lousy business, but it could be a great investment if you approach it patiently.The payments industry is too good to ignore here, and every time these stocks go down … it pays to buy actions. "

Disclosure: The Cramer Charitable Trust owns shares of Goldman Sachs.