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Here's Why Wex (WEX) is a Strong Momentum Stock
ZACKSยท 2025-08-19 14:51
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies stocks with upward or downward trends in price or earnings outlook, utilizing one-week price changes and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down their choices [8] - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 (Hold) ranked stocks should also have A or B Scores for maximum upside potential [9] Company Spotlight: WEX Inc. - WEX Inc., based in South Portland, ME, is a prominent provider of payment processing and business solutions across various sectors, including fleet, travel, and healthcare [11] - WEX holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of B, reflecting a 12% increase in shares over the past four weeks [11] - In the last 60 days, eight analysts have raised their earnings estimates for WEX for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.64 to $15.63 per share, and an average earnings surprise of +2.4% [12]