Why Wex (WEX) is a Top Value Stock for the Long-Term

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Headquartered in South Portland, ME, WEX Inc. is a leading provider of payment processing and other business solutions across a wide spectrum of sectors, including fleet, travel and healthcare.

WEX is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 11X for the current fiscal year compared to the Financial Transaction Services industry's P/E 15.7X. Additionally, WEX has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 7.9X. Value investors should also note WEX's Price/Sales ratio of 2.3X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.58 to $15.57. WEX has an average earnings surprise of 2.4%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding WEX to their portfolios.

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WEX Inc. (WEX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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