Is It Time to Consider Buying WEX Inc. (NYSE: WEX)?
WEX Inc. (NYSE: WEX), may not be a large cap stock, but it has seen significant stock price movement in recent months on the NYSE, reaching highs of US $ 203 and falling to lows of US $ 144. Certain movements in stock prices can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to be answered is whether WEX’s current trading price of US $ 144 reflects the true value of the mid-cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of WEX based on the most recent financial data to see if there are any catalysts for a price change.
Is WEX still cheap?
Great news for investors – WEX is still trading fairly cheaply. According to my assessment, the intrinsic value of the stock is $ 221.89, but it is currently trading at US $ 144 in the stock market, which means there is still an opportunity to buy now. However, there may be another chance to buy again in the future. This is because WEX’s beta (a measure of stock price volatility) is high, which means its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall more than the rest of the market, providing a prime buying opportunity.
What kind of growth will WEX generate?
NYSE: WEX Profit and Revenue Growth November 3, 2021
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. While value investors argue that intrinsic value versus price matters most, a more compelling investment thesis would be high growth potential at a cheap price. With expected double-digit revenue growth of 28% over the next two years, the outlook is positive for WEX. If the spending level can be maintained, it looks like a higher cash flow is in sight for the stock, which should fuel a higher valuation of the stock.
What this means for you:
Are you a shareholder? Given that WEX is currently undervalued, perhaps now is a great time to increase your holdings of equities. With optimistic prospects on the horizon, it seems that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on WEX for a while, it might be time to get into the stock. Its promising future prospects are not yet fully reflected in the current share price, which means it is not too late to buy WEX. But before making an investment decision, consider other factors such as the track record of its management team, in order to make an informed investment decision.
So, if you want to dig deeper into this title, it is crucial to take into account the risks it faces. Our analysis shows 2 warning signs for WEX (1 is potentially serious!) And we strongly recommend that you review them before investing.
If you are no longer interested in WEX, you can use our free platform to view our list of over 50 other high growth potential stocks.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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