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WEX Joins Forces With Supply Chain Technology Provider Octet

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WEX Inc. (WEX - Free Report) recently announced its partnership with Octet — a Sydney-based supply chain technology provider and financier.

Octet’s platform enables tracking, validation and authorization of each step of the supply chain. It mainly serves Australian small- and medium-sized businesses.

Through the partnership, WEX will allow Octet’s customers to use virtual credit cards to pay their suppliers. Benefits include improved cash flows, no currency conversion fee for international transactions and the facility to pay suppliers in their preferred currency with a secure 16-digit virtual credit number.

The news follows WEX’s announcement to snap up Go Fuel Card, the fuel card business of fuel station and convenience store retailer — EG Card. Go Fuel Card also serves small and medium enterprises along with larger fleet players.

WEX Inc. Revenue (TTM)

Our Take

Partnerships are a key growth catalyst, which enabled WEX to significantly enhance offerings and expand business.

We believe that the partnership with Octet will enable WEX to enhance its position in the commercial payments space. This will pave way for increased customer acquisition, especially small- and medium-sized businesses.

Shares of WEX have rallied 40.7% year to date compared with the 23.9% rise of the industry it belongs to.

Zacks Rank and Other Key Picks

Currently, WEX has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Zacks Business Services sector are Copart (CPRT - Free Report) , Booz Allen Hamilton (BAH - Free Report) and Automatic Data Processing (ADP - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected EPS (three to five years) growth rate for Copart, Booz Allen and Automatic Data Processing is 20%, 14.6% and 13%, respectively.

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