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Reasons Why You Should Retain WEX Stock in Your Portfolio
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Key Takeaways
WEX shares rose 4% in a month, while the industry declined 3.9%. Earnings are expected to grow through 2027.
WEX's Mobility, Benefits and Corporate Payments segments drive revenues across complex global payment markets.
WEX launched EV Depot & acquired Sawatch Labs to support fleet electrification & expand revenue opportunities.
Shares of WEX (WEX - Free Report) have had a decent run over the past month. The stock has gained 4% against the industry’s 3.9% decline.
WEX has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s first-quarter 2026 earnings are expected to increase 11.7% year over year. Earnings for 2026 and 2027 are projected to rise 8.8% and 10.1%, respectively, year over year. Revenues are expected to increase 2.8% in 2026 and 5.1% in 2027.
Factors That Bode Well for WEX
WEX’s top line is largely driven by its multi-channel corporate payment solutions. Its Mobility, Benefits and Corporate Payments segments collectively provide a competitive advantage through exposure to large, growing and operationally complex markets.
The Mobility segment generates revenues from payment processing, account servicing and financing fees. The online travel market and complex payment environment of business-to-business operations in North America, South America, Europe and the Asia-Pacific drive the revenue generation in the Corporate Payment segment, while the Benefits segment generates revenues by easing the administration of benefits for employers, including consumer-directed health accounts, for employees of its clients, either directly or via partners.
WEX is leveraging AI across customer discovery, prototyping, coding, QA, infrastructure management and security. The recently launched WEX EV Depot, a platform that enables simple, secure and frictionless charging at private chargers when using a WEX Fleet Card, helps businesses manage and control expenses, such as fuel, tires, maintenance and wireless plans, through discounts. WEX has positioned itself at the forefront of the fleet EV transition with the launch of the platform, which could potentially open new revenue streams.
The acquisition of Sawatch Labs in 2024, a Colorado-based startup focused on fleet electrification analytics software, enhanced WEX’s ability to support customers in their EV evaluation process. Recently, the company has also witnessed momentum and double-digit revenue growth in the Field Service Management division, formerly known as Payzer, which WEX acquired in October 2023. The company has updated and aligned the brand, refined its own cross-sell process, improved retention, made key product enhancements and updated pricing over the years to drive further growth. It is also expanding its technological reach through a new partnership with Trucker Path, a leading mobile app used by more than one million professional truck drivers.
Although WEX’s current ratio (a measure of liquidity) of 1.05 at the end of the fourth quarter of 2025 is below the industry average of 1.14, it still indicates that the company is well-equipped to pay off its short-term obligations efficiently.
A Risk to Watch
WEX has never declared and currently has no plans to pay cash dividends. This may discourage cash dividend-seeking investors, leaving them with potential returns only from share price appreciation. Since share price appreciation is variable, dividend-focused investors may hesitate to bet on it.
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Reasons Why You Should Retain WEX Stock in Your Portfolio
Key Takeaways
Shares of WEX (WEX - Free Report) have had a decent run over the past month. The stock has gained 4% against the industry’s 3.9% decline.
WEX has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s first-quarter 2026 earnings are expected to increase 11.7% year over year. Earnings for 2026 and 2027 are projected to rise 8.8% and 10.1%, respectively, year over year. Revenues are expected to increase 2.8% in 2026 and 5.1% in 2027.
Factors That Bode Well for WEX
WEX’s top line is largely driven by its multi-channel corporate payment solutions. Its Mobility, Benefits and Corporate Payments segments collectively provide a competitive advantage through exposure to large, growing and operationally complex markets.
WEX Inc. Revenue (TTM)
WEX Inc. revenue-ttm | WEX Inc. Quote
The Mobility segment generates revenues from payment processing, account servicing and financing fees. The online travel market and complex payment environment of business-to-business operations in North America, South America, Europe and the Asia-Pacific drive the revenue generation in the Corporate Payment segment, while the Benefits segment generates revenues by easing the administration of benefits for employers, including consumer-directed health accounts, for employees of its clients, either directly or via partners.
WEX is leveraging AI across customer discovery, prototyping, coding, QA, infrastructure management and security. The recently launched WEX EV Depot, a platform that enables simple, secure and frictionless charging at private chargers when using a WEX Fleet Card, helps businesses manage and control expenses, such as fuel, tires, maintenance and wireless plans, through discounts. WEX has positioned itself at the forefront of the fleet EV transition with the launch of the platform, which could potentially open new revenue streams.
The acquisition of Sawatch Labs in 2024, a Colorado-based startup focused on fleet electrification analytics software, enhanced WEX’s ability to support customers in their EV evaluation process. Recently, the company has also witnessed momentum and double-digit revenue growth in the Field Service Management division, formerly known as Payzer, which WEX acquired in October 2023. The company has updated and aligned the brand, refined its own cross-sell process, improved retention, made key product enhancements and updated pricing over the years to drive further growth. It is also expanding its technological reach through a new partnership with Trucker Path, a leading mobile app used by more than one million professional truck drivers.
Although WEX’s current ratio (a measure of liquidity) of 1.05 at the end of the fourth quarter of 2025 is below the industry average of 1.14, it still indicates that the company is well-equipped to pay off its short-term obligations efficiently.
A Risk to Watch
WEX has never declared and currently has no plans to pay cash dividends. This may discourage cash dividend-seeking investors, leaving them with potential returns only from share price appreciation. Since share price appreciation is variable, dividend-focused investors may hesitate to bet on it.
WEX currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
A couple of better-ranked stocks in the Business Services sector are Deluxe (DLX - Free Report) and Coherent Corp. (COHR - Free Report) .
Deluxe carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 12%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DLX delivered a trailing four-quarter earnings surprise of 15.6% on average.
Coherent Corp. holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 29.9%.
COHR beat earnings estimates in each of the last four quarters, with the earnings surprise being 7.7%, on average.