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Booz Allen Hamilton Holding Corporation (BAH) - $25 value - yours FREE >>
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Booz Allen Hamilton Holding Corporation (BAH) - $25 value - yours FREE >>
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Here's Why You Should Retain WEX Stock in Your Portfolio
WEX Inc. (WEX - Free Report) shares have had an impressive run over the past six months. The stock gained 14.6% compared with the 7.2% rise of the industry it belongs to and the 3.6% rally of the Zacks S&P 500 composite.
Factors That Bode Well
WEX’s top line continues to grow organically, driven by its extensive network of fuel and service providers, transaction volume growth, product excellence and marketing capabilities. In the third quarter of 2022, organic revenue growth was 22%.
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 28% 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.
Some Risks
WEX’s current ratio at the end of the third quarter of 2022 was pegged at 1.12, lower than the current ratio of 1.23 reported at the end of the previous quarter. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt 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 are DocuSign (DOCU - Free Report) and Booz Allen Hamilton Holding Corporation (BAH - Free Report) .
DocuSign currently sports a Zacks Rank #1 (Strong Buy). DOCU has a long-term earnings growth expectation of 13.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCU delivered a trailing four-quarter earnings surprise of 6.6% on average.
Booz Allen presently carries a Zacks Rank #2 (Buy). BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.