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Here's Why You Should Retain WEX Stock in Your Portfolio

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WEX Inc.’s (WEX - Free Report) stock has gained 4.7% in the past three months against 5.1% decline of the industry it belongs to.

WEX has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.

The company has an expected long-term (three to five years) earnings per share growth rate of 17.4%. Its earnings for 2022 and 2023 are expected to grow 27.6% and 13.1% year over year, respectively.

Factors That Auger Well

WEX’s strategic revenue generation efforts include utilizing its extensive network of fuel and service providers, transaction volume growth, product excellence, marketing capabilities, and sales force productivity.

WEX has been actively acquiring and investing in companies, both in the United States and internationally, to expand its product and service offerings, thereby contributing to revenue growth and enhancing scalability.

The June 2021 acquisition of benefitexpress has expanded WEX’s offerings in benefits administration by bringing in a complementary suite of solutions to its Health offerings. In 2020, WEX acquired eNett and Optal, both of which have strengthened the company’s position in the global travel marketplace.

Some Risks

WEX’s current ratio at the end of fourth-quarter 2021 was pegged at 1.21, lower than the current ratio of 1.23 reported at the end of the third-quarter and 1.28 at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.

Zacks Rank and Stocks to Consider

WEX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .

Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.

Cross Country Healthcare’s shares have surged 67% in the past year. CCRN sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FactSet has an expected earnings growth rate of 16.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.

FactSet's shares have surged 36.7% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2 (Buy).


See More Zacks Research for These Tickers


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FactSet Research Systems Inc. (FDS) - free report >>

Cross Country Healthcare, Inc. (CCRN) - free report >>

WEX Inc. (WEX) - free report >>

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