Wex Inc Stock Buy Hold or Sell Recommendation

WEX Stock  USD 237.53  3.65  1.56%   
Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding Wex Inc is 'Strong Buy'. Macroaxis provides Wex buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Wex positions. The advice algorithm takes into account all of Wex's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Wex's buy or sell advice are summarized below:
Real Value
267.56
Target Price
230.08
Hype Value
237.53
Market Value
237.53
Naive Value
236.08
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Wex Inc given historical horizon and risk tolerance towards Wex. When Macroaxis issues a 'buy' or 'sell' recommendation for Wex Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Wex Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Wex and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Wex Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.

Execute Wex Buy or Sell Advice

The Wex recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Wex Inc. Macroaxis does not own or have any residual interests in Wex Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Wex's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell WexBuy Wex
Strong Buy

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Wex Inc has a Risk Adjusted Performance of 0.1538, Jensen Alpha of 0.1683, Total Risk Alpha of 0.0392, Sortino Ratio of 0.1339 and Treynor Ratio of 0.2869
Macroaxis provides trade recommendation on Wex to complement and cross-verify current analyst consensus on Wex Inc. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Wex Inc is not overpriced, please check out all Wex Inc fundamentals, including its short ratio, and the relationship between the cash per share and market capitalization . Given that Wex Inc has a price to earning of 68.45 X, we strongly advise you to confirm Wex Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Wex Trading Alerts and Improvement Suggestions

Over 99.0% of the company outstanding shares are owned by institutional investors
Latest headline from news.google.com: StockNews.com Downgrades WEX to Hold - MarketBeat

Wex Returns Distribution Density

The distribution of Wex's historical returns is an attempt to chart the uncertainty of Wex's future price movements. The chart of the probability distribution of Wex daily returns describes the distribution of returns around its average expected value. We use Wex Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Wex returns is essential to provide solid investment advice for Wex.
Mean Return
0.31
Value At Risk
-1.23
Potential Upside
2.29
Standard Deviation
1.15
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Wex historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Wex Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Wex is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Wex Inc backward and forwards among themselves. Wex's institutional investor refers to the entity that pools money to purchase Wex's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
River Road Asset Management, Llc2023-12-31
727.5 K
Geode Capital Management, Llc2023-12-31
669 K
Neuberger Berman Group Llc2023-12-31
640.1 K
Brown Advisory Holdings Inc2023-12-31
617 K
Bank Of America Corp2023-12-31
582.9 K
Fmr Inc2023-12-31
468.5 K
Norges Bank2023-12-31
461.3 K
Primecap Management Company2023-12-31
454.6 K
Goldman Sachs Group Inc2023-12-31
444.7 K
Vanguard Group Inc2023-12-31
4.2 M
Hhg Plc2023-12-31
4.1 M
Note, although Wex's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Wex Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash426.4M348.3M(72.8M)602.9M370.3M388.8M
Free Cash Flow560.3M776.5M64.4M563.2M763.9M802.1M
Depreciation237.1M261.9M272.6M263.9M276.2M290.0M
Other Non Cash Items104.5M251.9M73.0M405.9M268.9M282.3M
Capital Expenditures102.9M80.5M86.0M116.2M148.1M155.5M
Net Income155.3M(280.5M)136.1M167.5M266.6M279.9M
End Period Cash Flow981.4M1.3B1.3B1.9B2.2B2.3B
Change To Inventory68.3M67.6M164.8M959.1M1.1B1.2B
Change To Netincome160.9M260.7M143.8M409.6M471.1M494.6M
Investments(5.3M)(5.4M)(956.3M)(716.7M)(1.6B)(1.5B)
Net Borrowings578.6M150.6M(258.5M)(129.0M)(116.1M)(110.3M)

Wex Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Wex or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Wex's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Wex stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.17
β
Beta against NYSE Composite1.04
σ
Overall volatility
1.19
Ir
Information ratio 0.15

Wex Volatility Alert

Wex Inc has relatively low volatility with skewness of -0.48 and kurtosis of 3.53. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wex's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Wex's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Wex Fundamentals Vs Peers

Comparing Wex's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Wex's direct or indirect competition across all of the common fundamentals between Wex and the related equities. This way, we can detect undervalued stocks with similar characteristics as Wex or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Wex's fundamental indicators could also be used in its relative valuation, which is a method of valuing Wex by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Wex to competition
FundamentalsWexPeer Average
Return On Equity0.15-0.31
Return On Asset0.0321-0.14
Profit Margin0.10 %(1.27) %
Operating Margin0.25 %(5.51) %
Current Valuation9.78 B16.62 B
Shares Outstanding41.73 M571.82 M
Shares Owned By Insiders0.55 %10.09 %
Shares Owned By Institutions99.45 %39.21 %
Number Of Shares Shorted801.93 K4.71 M
Price To Earning68.45 X28.72 X
Price To Book5.45 X9.51 X
Price To Sales3.89 X11.42 X
Revenue1.2 M9.43 B
Gross Profit1.73 B27.38 B
EBITDA14.81 M3.9 B
Net Income266.6 M570.98 M
Cash And Equivalents921.98 M2.7 B
Cash Per Share50.02 X5.01 X
Total Debt3.95 B5.32 B
Debt To Equity1.84 %48.70 %
Current Ratio1.12 X2.16 X
Book Value Per Share43.45 X1.93 K
Cash Flow From Operations912 M971.22 M
Short Ratio2.84 X4.00 X
Earnings Per Share6.15 X3.12 X
Price To Earnings To Growth1.52 X4.89 X
Target Price242.42
Number Of Employees7.2 K18.84 K
Beta1.59-0.15
Market Capitalization9.91 B19.03 B
Total Asset13.88 B29.47 B
Retained Earnings1.76 B9.33 B
Working Capital416.1 M1.48 B
Note: Disposition of 119 shares by Melanie Tinto of Wex at 233.95 subject to Rule 16b-3 [view details]

Wex Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Wex . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Wex Buy or Sell Advice

When is the right time to buy or sell Wex Inc? Buying financial instruments such as Wex Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Total Current Liabilities4.4B6.3B8.5B8.9B
Total Assets10.3B11.5B13.9B14.6B

Use Investing Ideas to Build Portfolios

In addition to having Wex in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Almost Nothing Thematic Idea Now

Almost Nothing
Almost Nothing Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Almost Nothing theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Almost Nothing Theme or any other thematic opportunities.
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When determining whether Wex Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wex's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Wex Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Wex Inc Stock:
Check out Wex Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the Wex Inc information on this page should be used as a complementary analysis to other Wex's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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When running Wex's price analysis, check to measure Wex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wex is operating at the current time. Most of Wex's value examination focuses on studying past and present price action to predict the probability of Wex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wex's price. Additionally, you may evaluate how the addition of Wex to your portfolios can decrease your overall portfolio volatility.
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Is Wex's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wex. If investors know Wex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wex listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Earnings Share
6.15
Revenue Per Share
59.533
Quarterly Revenue Growth
0.072
Return On Assets
0.0321
The market value of Wex Inc is measured differently than its book value, which is the value of Wex that is recorded on the company's balance sheet. Investors also form their own opinion of Wex's value that differs from its market value or its book value, called intrinsic value, which is Wex's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wex's market value can be influenced by many factors that don't directly affect Wex's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Wex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wex's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.