Reasons Why You Should Retain WEX Stock in Your Portfolio

Shares of WEX WEX have had a decent run over the past month. The stock has gained 5.2% against the industry’s 3.5% decline.

The company’s fourth-quarter 2025 earnings are expected to increase 9.2% year over year. Its 2025 and 2026 earnings are expected to rise 4.3% and 11%, respectively.

Factors That Bode Well for WEX

WEX’s revenue growth is collectively driven by its Mobility, Benefits and Corporate Payments segments, which provide a competitive advantage through exposure to large, growing and operationally complex markets. The company integrates payments, proprietary data and banking services, using its payment intelligence, to deliver actionable insights for faster and better-informed decisions.

                                             WEX Inc. Revenue (TTM)

WEX Inc. revenue-ttm | WEX Inc. Quote

The Mobility segment enables real-time commercial and government fleet vehicle payment processing services, helping clients control spending, optimize routing, and improve efficiency across millions of daily transactions. WEX’s Benefits segment offers a platform that integrates payments into broader workflows, easing the administration of benefits, including consumer-directed health accounts, for its clients to their employees either directly or via partners.

WEX’s focused approach toward leveraging AI across customer discovery, prototyping, coding, QA, infrastructure management and security has helped drive a significant increase in product innovation velocity. The company recently launched WEX EV Depot, a platform that enables simple, secure and frictionless charging at private chargers when using a WEX Fleet Card, helping businesses manage and control expenses like fuel, tires, maintenance and wireless plans through discounts.

The acquisition of Sawatch Labs in 2024, a Colorado-based startup focused on fleet electrification analytics software, enhancedWEX’s ability to support customers in their EV evaluation processes. The company is also expanding its technological reach through a new partnership with Trucker Path, a leading mobile app used by over 1 million professional truck drivers.

Although below the industry average of 1.14, WEX’s current ratio (a measure of liquidity) of 1.05 in the third quarter of 2025 indicates that the company is well-equipped to pay off its short-term obligations efficiently.

A Risk

WEX has never declared and currently has no plans to pay cash dividends. This may discourage cash dividend-seeking investors, leaving them with a potential return only from share price appreciation. Since share price appreciation is variable, dividend-focused investors may hesitate to bet on it.

Zacks Rank & Stocks to Consider

WEX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A couple of better-ranked stocks in the broader Business Services sector are Information Services Group III and Charles River Associates CRAI.

Information Services holds a Zacks Rank #2 (Buy) at present. III has a long-term earnings growth expectation of 18.5%. The company delivered a trailing four-quarter earnings surprise of 15.9% on average.

Charles River also has a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 16%. CRAI delivered a trailing four-quarter earnings surprise of 15% on average.

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

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