Here's Why You Should Retain WEX Stock in Your Portfolio Now

WEX Inc. WEX has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. It has a long-term (three to five years) expected earnings growth rate of 5%.WEX’s TailwindsWEX is a leader in the fleet payments industry, providing payment solutions for fuel management, corporate travel and healthcare. Its dominance in this niche market gives it a competitive advantage, and it benefits from long-term customer relationships and the recurring nature of its services. Fleet operators rely on WEX's solutions for better fuel efficiency and cost management.The company has effectively diversified its operations across three segments: Mobility, Corporate Paymentsand Benefits. This diversification provides the company with multiple revenue streams and reduces its reliance on any one industry. As a result, WEX is better positioned to weather economic volatility in specific sectors, such as travel or healthcare, which adds to its overall resilience.The company has led the way in leveraging technology to create innovative payment and data analytics solutions. WEX’s focus on enhancing user experience through mobile apps, real-time data tracking and digital payment solutions gives it an edge over competitors. This innovation in payment solutions not only improves customer loyalty but also helps attract new clients, especially in a technology-driven market.WEX’s top line continues to grow organically, driven by its extensive network of fuel and service providers, product excellence, marketing capabilities and other strategic revenue generation efforts. Robust demand for its payment processing, account servicing, and transaction processing services and operational efficiency have helped WEX achieve solid revenue and earnings growth. Further, the company’s strategic acquisitions should complement its organic growth by contributing to revenues, adding differentiation to its products and service offerings and enhancing scalability.WEX Inc. Price WEX Inc. price | WEX Inc. QuoteSome Risks for WEXThe payment solutions industry is competitive, with many players offering similar services. WEX faces strong competition from both established companies and fintech startups, which could exert pressure on pricing and margins. As these competitors innovate, WEX will need to continually invest in new technologies to maintain its edge.The company does not pay out cash dividends. So, the only way to achieve a return on investment in its stock is share price appreciation, which is not guaranteed. Investors seeking cash dividends may avoid buying WEX shares.WEX’s Zacks Rank & Stocks to ConsiderWEX currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader Zacks Business Services sector are AppLovin APP and PagSeguro Digital Ltd. PAGS, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AppLovin has a long-term earnings growth expectation of 20%. APP delivered a trailing four-quarter earnings surprise of 23.5%, on average.PagSeguro Digital has a long-term earnings growth expectation of 13.6%. PAGS delivered a trailing four-quarter earnings surprise of 9.3%, on average.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AppLovin Corporation (APP): Free Stock Analysis Report WEX Inc. (WEX): Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks