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Here's Why Wex (WEX) is a Strong Value Stock

Zacks Equity Research
·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Wex (WEX)

Headquartered in South Portland, ME, WEX Inc. is a leading provider of payment processing and business solutions across a wide spectrum of sectors, including fleet, travel and healthcare.

WEX is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 12.5X for the current fiscal year compared to the Financial Transaction Services industry's P/E of 14.6X. Additionally, WEX has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 11.9X. Value investors should also note WEX's Price/Sales ratio of 3.3X.

A company's earnings performance is important for value investors as well. For fiscal 2022, six analysts revised their earnings estimate higher in the last 60 days for WEX, while the Zacks Consensus Estimate has increased $0.08 to $13.32 per share. WEX also holds an average earnings surprise of 5.5%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding WEX to their portfolios.

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WEX Inc. (WEX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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