What Analysts Are Saying About WEX Stock

4 analysts have expressed a variety of opinions on WEX WEX over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $234.75, a high estimate of $255.00, and a low estimate of $220.00. This upward trend is apparent, with the current average reflecting a 13.13% increase from the previous average price target of $207.50.

Decoding Analyst Ratings: A Detailed Look

The standing of WEX among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to WEX. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of WEX compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of WEX's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into WEX's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on WEX analyst ratings.

Delving into WEX's Background

WEX Inc is a provider of corporate payment solutions. The company operates three business segments: Fleet solutions, Travel & Corporate Solutions, and Health & Employee Benefit Solutions. Fleet Solutions, the largest segment by revenue, provides fleet vehicle payment-processing services for commercial and government fleets. Travel and corporate solutions offer business-to-business payment processing and transaction monitoring services. Health and employee benefit solutions generate revenue from healthcare payment products and its consumer-directed software platform. Wex's largest end market is the United States of America.

WEX: A Financial Overview

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: WEX displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 1.83%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: WEX's net margin is impressive, surpassing industry averages. With a net margin of 12.8%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): WEX's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.83% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): WEX's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.61%, the company may face hurdles in achieving optimal financial performance.

Debt Management: WEX's debt-to-equity ratio surpasses industry norms, standing at 2.12. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.