So far this year, shares of WEX Inc. (WEX - Free Report) have gained 42.2%, outperforming the 27.1% rise of the industry it belongs to.
The company recently announced that it has inked a deal with Moneris Solutions Corporation (“Moneris”) — one of the biggest credit and debit card processors in Canada. Moneris processes more than 3 billion transactions every year for more than 350,000 merchant locations.
The partnership will enable petroleum-based businesses accept WEX fleet cards using Moneris’ PetroTrak point-of-sale (POS) and fleet management solution across Canada.
The PetroTrak host certification provides national merchants with a comprehensive fleet management solution to process WEX Fleet Cards and commercial, debit and credit card payments. The PetroTrak application records WEX Fleet Card payments in its transaction activity reports and Universal Settlement Files.
The move follows WEX’s collaboration with Sydney-based Troovo Technologies for robotic process automation of virtual card generation. The companies have collaborated to unlock travel and business-to-business (B2B) spend using Troovo Payments and WEX virtual cards in the Asia Pacific region. It seems that WEX is actively engaged in partnerships to grow internationally.
The partnership is likely to help WEX strengthen its Fleet Solutions segment, which offers customers with fleet vehicle payment processing services, particularly designed for commercial and government use. Performance of the segment was strong in the last reported quarter with revenues improving 20.6% year over year. The segment contributed the largest chunk (around 65%) to WEX’s total revenues in second-quarter 2018.
Zacks Rank & Other Stocks to Consider
Currently, WEX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Business Services sector include Broadridge Financial Solutions (BR - Free Report) , Paychex (PAYX - Free Report) and Convergys , each carrying a Zacks Rank of 2. The long-term expected earnings per share growth rate for Broadridge Financial Solutions, Paychex and Convergys is 10%, 8.2% and 7.5%, respectively.
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