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WEX Shares Up 13.5% in the Past Three Months: Here's How
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WEX Inc. (WEX - Free Report) shares have had an impressive run over the past three months. The stock has rallied 13.5% compared with 5.3% rise of the industry it belongs to and 2.4% increase of the Zacks S&P 500 composite.
Reasons for the Upside
Product and service quality and a deep understanding of customers’ operational needs have enabled WEX to achieve revenue stability with the help of long-standing strategic relationships, multi-year contracts and high contract renewal rates. The company has an extensive network of fuel and service providers and a healthy transaction volume. Revenues grew 28% on a reported basis and 22% organically in the third quarter of 2022.
WEX has been actively acquiring and investing in companies in the United States as well as internationally, to expand its product and service offerings, thereby boosting its 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.
Favorable Estimate Revisions
The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Six estimates for 2022 have moved north over the past 60 days versus one southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2022 earnings has increased 0.7%.
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 are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
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WEX Shares Up 13.5% in the Past Three Months: Here's How
WEX Inc. (WEX - Free Report) shares have had an impressive run over the past three months. The stock has rallied 13.5% compared with 5.3% rise of the industry it belongs to and 2.4% increase of the Zacks S&P 500 composite.
Reasons for the Upside
Product and service quality and a deep understanding of customers’ operational needs have enabled WEX to achieve revenue stability with the help of long-standing strategic relationships, multi-year contracts and high contract renewal rates. The company has an extensive network of fuel and service providers and a healthy transaction volume. Revenues grew 28% on a reported basis and 22% organically in the third quarter of 2022.
WEX Inc. Revenue (TTM)
WEX Inc. revenue-ttm | WEX Inc. Quote
WEX has been actively acquiring and investing in companies in the United States as well as internationally, to expand its product and service offerings, thereby boosting its 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.
Favorable Estimate Revisions
The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Six estimates for 2022 have moved north over the past 60 days versus one southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2022 earnings has increased 0.7%.
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 are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7% on average.