WEX Stock Gains 11.2% in the Past Three Months: Here's How
WEX Inc. WEX shares have had an impressive run over the past three months. The stock has rallied 11.2% compared with the 7.5% rise of the industry it belongs to and the 5% increase of the Zacks S&P 500 composite.
Reasons for the Upside
WEX’s top line continues to grow organically, driven by its extensive network of fuel and service providers, transaction volume growth, product excellence, marketing capabilities, sales force productivity and other strategic revenue generation efforts. Robust demand for its payment processing, account servicing and transaction processing services, along with operational efficiency, has helped WEX achieve solid revenue growth.
WEX Inc. Price
WEX Inc. price | WEX Inc. Quote
The company’s strategic acquisitions complement its organic growth by contributing to revenues, adding differentiation to its products and service offerings and enhancing scalability. We remain optimistic about organic growth opportunities across each of its segments and expect revenue growth to be around 6.3% in 2023.
The 2021 acquisition of benefitexpress has expanded WEX’s offerings in benefits administration by bringing in a complementary suite of solutions to its Health offerings.
Favourable Estimate Revisions
The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Eight estimates for 2023 have moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2022 earnings has increased 1.6%.
Zacks Rank and Stocks to Consider
WEX currently carries a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
DocuSign DOCU beat the Zacks Consensus Estimate in all the four trailing quarters, with an earnings surprise of 25.6%. The current consensus estimate for revenues indicates an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International CRAI beat the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earnings surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicates a 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating a 7.6% year-over-year decline. CRAI carries a Zacks Rank #2 (Buy), at present.
ABM Industries ABM beat the Zacks Consensus Estimate in all the four trailing quarters, with an earnings surprise of 2.64%. The current Zacks Consensus Estimate for revenues indicates a 3.5% increase from the year-ago figure. The consensus mark for earnings is pegged at $3.51 per share, indicating a 4.1% year-over-year decline. ABM has a Zacks Rank of 2, at present.
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