Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

WEX Still Has Good Growth Prospects, But A Fair Valuation

Shares of corporate payments specialist WEX (NYSEMKT:WEX) have hardly been still over the last six months, trading between $80 and $101 and sporting a beta (according to Yahoo! Finance) of 1.96. Even so, they are almost exactly where they were when I wrote that the company was a well-run player in attractive markets, but that the shares seemed a little expensive.

WEX has made some important moves since October, including acquiring operations in Brazil and acquiring Exxon Mobil's (NYSE:XOM) European ESSO card business, but actual organic transaction growth has been fairly sluggish and the company's B2B virtual MasterCard (NYSE:MA) program is still a faster-growing work in progress. I do see multiple opportunities for...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details