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WEX Rides on Buyouts and Product Excellence Amid High Debt

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WEX Inc. (WEX - Free Report) has had an impressive run on the bourses over the past six months. The stock appreciated 15.4% against 9.7% decline of the industry it belongs to.

WEX recently reported fourth-quarter 2021 adjusted earnings of $2.58 per share that surpassed the Zacks Consensus Estimate by 4.9% and increased 77.9% year over year. Total revenues of $497.5 million surpassed the consensus mark by a slight margin and increased 25% year over year.

How is WEX Doing?

WEX’s strategic revenue-generation efforts include utilizing its extensive network of fuel and service providers, transaction volume growth, product excellence, marketing capabilities, and sales force productivity.

The company has been actively acquiring and investing in companies, both in the United States as well as internationally, to expand its product and service offerings, which are in turn contributing to revenue growth and enhancing scalability.

The June 2021 acquisition of benefitexpress is expected to expand WEX’s offerings in benefits administration by bringing in a complementary suite of solutions to its Health offerings. In 2020, WEX acquired eNett and Optal, both of which have strengthened the company’s position in the global travel marketplace.

WEX has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $588.9 million compared with the long-term debt level of $2.7 billion.

Zacks Rank and Other Stocks to Consider

WEX currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , Accenture (ACN - Free Report) and Clean Harbors (CLH - Free Report) .

Cross Country Healthcare sports a Zacks Rank #1. The company has a long-term earnings growth of 6.6%.

Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 68.1% in the past year.

Accenture carries a Zacks Rank #2. The company has an expected earnings growth rate of 26% for the current year. It delivered a trailing four-quarter earnings surprise of 5.3%, on average.

Accenture’s shares have surged 26% in the past year. The company has a long-term earnings growth of 10%.

Clean Harbors carries a Zacks Rank #1. The company pulled off a trailing four-quarter earnings surprise of 43.2%, on average.

CLH’s shares have jumped 11.9% in the past year.

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