In the latest trading session, Wex (WEX) closed at $162.49, marking a -0.68% move from the previous day. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 2.51%.
Heading into today, shares of the provider of fuel payment processing for fleet vehicles had lost 4.62% over the past month, lagging the Business Services sector's gain of 2.92% and the S&P 500's gain of 3.73% in that time.
Wall Street will be looking for positivity from WEX as it approaches its next earnings report date. This is expected to be July 30, 2020. The company is expected to report EPS of $1.42, down 37.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $352.84 million, down 20.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.16 per share and revenue of $1.57 billion. These totals would mark changes of -22.17% and -9.14%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WEX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% higher within the past month. WEX currently has a Zacks Rank of #3 (Hold).
Investors should also note WEX's current valuation metrics, including its Forward P/E ratio of 22.86. This valuation marks a discount compared to its industry's average Forward P/E of 30.63.
It is also worth noting that WEX currently has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.9 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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