U.S. markets open in 9 hours 14 minutes
  • S&P Futures

    4,216.25
    +6.50 (+0.15%)
     
  • Dow Futures

    33,346.00
    +42.00 (+0.13%)
     
  • Nasdaq Futures

    13,344.50
    +33.25 (+0.25%)
     
  • Russell 2000 Futures

    1,980.20
    +3.90 (+0.20%)
     
  • Crude Oil

    93.89
    -0.45 (-0.48%)
     
  • Gold

    1,806.60
    -0.60 (-0.03%)
     
  • Silver

    20.33
    -0.01 (-0.07%)
     
  • EUR/USD

    1.0320
    -0.0005 (-0.05%)
     
  • 10-Yr Bond

    2.8880
    +0.1020 (+3.66%)
     
  • Vix

    20.20
    +0.46 (+2.33%)
     
  • GBP/USD

    1.2191
    -0.0011 (-0.09%)
     
  • USD/JPY

    133.2100
    +0.2110 (+0.16%)
     
  • BTC-USD

    24,026.71
    -327.91 (-1.35%)
     
  • CMC Crypto 200

    571.28
    -3.46 (-0.60%)
     
  • FTSE 100

    7,465.91
    -41.20 (-0.55%)
     
  • Nikkei 225

    28,516.46
    +697.13 (+2.51%)
     

6 Reasons Why It is Worth Betting on WEX for Your Portfolio

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

WEX Inc. WEX has performed well in the year-to-date period and has shown the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.

Let’s look at the factors that make the stock an attractive pick.

An Outperformer: Shares of WEX have rallied 12.6% in the year-to-date period against the 12.8% fall of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Solid Rank: WEX currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: One estimate for 2022 has moved north in the past 60 days versus no southward revision, indicative of analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved up 0.2% in the past 60 days.

Positive Earnings Surprise History: WEX has an impressive surprise history. Its earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 8.6%.

Strong Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $12.70, suggesting growth of 39% from the year-ago reported figure. Moreover, earnings are expected to register 8.2% growth in 2023. WEX’s long-term expected earnings per share (EPS) growth rate is 17.8%.

Driving Factors: Acquisitions have acted as a key catalyst for WEX so far.  It has been actively acquiring and investing in businesses, both in the United States and internationally for a while, to expand its product and service offerings, thus contributing to revenue growth and enhancing scalability. The acquisition of benefitexpress in 2021 is expected to extend WEX’s health and employee benefits’ products and services across the employer clients. In 2020, WEX acquired eNett and Optal, both having strengthened its position in the global travel marketplace.

Robust demand for payment processing, account servicing, transaction processing services and operational efficiency helped WEX achieve solid revenues and earnings growth. WEX’s first-quarter 2022 revenues and adjusted EPS rose 26% and 61%, respectively, year over year.

Other Stocks to Consider

Other stocks worth considering in the broader Zacks Business Services sector include Avis Budget Group, Inc. CAR, Genpact Limited G and CRA International, Inc. CRAI.

Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%.

Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.

Genpact sports a Zacks Rank of 1 at present. G has a long-term earnings growth expectation of 12.3%.

Genpact delivered a trailing four-quarter earnings surprise of 13.3%, on average.

CRA International sports a Zacks Rank #1, currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Charles River Associates (CRAI) : Free Stock Analysis Report
 
Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
 
Genpact Limited (G) : Free Stock Analysis Report
 
WEX Inc. (WEX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research