WEX Inc. WEX has performed extremely well so far this year. It appreciated a massive 45%, significantly outperforming the 34.5% rally of the industry it belongs to.
So, if you haven’t taken advantage of this share price appreciation yet, we believe it’s time you add this financial transaction services stock to your portfolio as it has the potential to sustain the momentum in the near term.
Here are some of the factors that make it an attractive pick.
Solid Rank: WEX has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Nine estimates for 2019 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2019 inched up 3.1%.
Positive Earnings Surprise History: WEX has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 2.1%.
Strong Growth Prospects: The Zacks Consensus Estimate for 2019 earnings is currently pegged at $9.32, reflecting year-over-year growth of 12.6%. Moreover, earnings are expected to register 15.7% growth in 2020. The stock has long-term expected earnings per share growth rate of 14.8%.
Growth Drivers: WEX remains focused on implementing new contract wins and adding new businesses. It continues to grow organically, driven by extensive network of fuel and service providers, transaction volume growth, product excellence, marketing capabilities and sales force productivity.
WEX Inc. Revenue (TTM)
WEX Inc. revenue-ttm | WEX Inc. Quote
The recent acquisition of Discovery Benefits has boosted WEX’s position as a technology platform in the healthcare space and enhanced its employee benefits platform. The Noventis acquisition has strengthened the company’s position as a corporate payments supplier.
The company’s bottom line is expected to ramp up through 2019 as it progresses with Shell and Chevron portfolio conversions and integration of recent acquisitions.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Navigant Consulting NCI, Global Payments GPN and NV5 Global NVEE. While Navigant Consulting sports a Zacks Rank #1, Global Payments and NV5 Global carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected EPS (three to five years) growth rate for Navigant Consulting, Global Payments and NV5 Global is 13.5%, 16.9% and 20%, respectively.
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