Yahoo Finance Here's Why You Should Add WEX Stock to Your Portfolio Now
WEX Inc.’s WEX stock has performed well in the past year, gaining 12.5%, and has the potential to sustain this momentum in the near term. Consequently, if you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes WEX an Attractive Pick?
Solid Rank and VGM Score: WEX has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment.
Northward Estimate Revisions: Seven estimates for 2024 have moved north in the past 60 days versus one southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for WEX’s fiscal 2024 earnings has moved up 0.4% in the past 60 days.
WEX Inc. Price
WEX Inc. price | WEX Inc. Quote
Strong Growth Prospects: The company has an expected long-term (three to five years) earnings per share growth rate of 12.4%. Its fiscal 2024 and 2025 earnings are expected to improve 9.8% and 13.8%, respectively, year over year.
Positive Earnings Surprise History: WEX has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 3.3%.
Growth Factors: Product and service quality and a deep understanding of customers’ operational needs have enabled the company to achieve revenue stability with the help of long-standing strategic relationships, multi-year contracts and high contract renewal rates. Revenues grew 6.7% year over in the first quarter of 2024.
The recent acquisition of Payzer, a cloud-based field service management software provider. Strengthened WEX’s growth strategy, offering scalable SaaS to 150,000 small business customers.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are DocuSign DOCU and Barrett Business Services BBSI.
DocuSign currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCU has a long-term earnings growth expectation of 13.3%. It delivered a trailing four-quarter earnings surprise of 23.7%, on average.
Barrett Business Services has a Zacks Rank of 2. It has a long-term earnings growth expectation of 14%. BBSI delivered a trailing four-quarter earnings surprise of 38.7%, on average.
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Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
WEX Inc. (WEX) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
