WEX Stock Rises 36.3% in Three Months: Here's What You Should Know

WEX WEX stock has gained 36.3% over the past three months, significantly outperforming the industry’s 9.5% growth and the Zacks S&P 500 Composite's 3% return.

WEX Three-Month Share Price Performance

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Let us delve deeper into the factors that have contributed to the company’s outperformance.

Broad-Based Segment Results Drive Growth

WEX is benefiting from broad-based growth across its diversified business mix. Mobility, its largest segment, generated $422.4 million in second-quarter 2026 revenues, up 22% year over year. Benefits revenues rose 5.6% to $206 million, while Corporate Payments increased 5.8% to $125.1 million. Total volume grew 15.7% to $68.9 billion, reflecting healthy customer activity and supporting multiple avenues for growth into 2027.

AI Integration & Pricing Actions Support Margin Expansion

WEX’s adjusted operating margin expanded about 280 basis points year over year to 39.6% in the second quarter of 2026, helped by higher fuel prices that increased revenues without a proportional rise in most operating costs. Excluding fuel-price and foreign-exchange effects, revenues grew 4.2%, while adjusted EPS increased 10.1%, reflecting healthy underlying execution. WEX also continues to deploy AI across credit adjudication, claims processing, development and other workflows, alongside pricing initiatives. These productivity and pricing actions should support margins in the second half of 2026 even without further fuel-price benefits.

Improving Leverage Enables Greater Capital Returns

WEX ended the second quarter of 2026 with leverage of 2.9X, down from 3.1X in the first quarter. Adjusted free cash flow increased to $219 million from $194.3 million a year earlier, despite operating cash use of $77.6 million. The company repurchased about $60 million of shares during the quarter and another $33 million through July 20. Management expects to direct most near-term adjusted free cash flow toward buybacks, supporting per-share value creation.

WEX’s 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 Thomson Reuters Corporation TRI and Veralto Corporation VLTO.

Thomson Reuters carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 11.7%.

TRI delivered a trailing four-quarter earnings surprise of 2.7%, on average.

Veralto also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 8%.

VLTO beat earnings estimates in each of the trailing four quarters, with an average earnings surprise of 6.6%.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

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WEX Inc. (WEX): Free Stock Analysis Report

Thomson Reuters Corp (TRI): Free Stock Analysis Report

Veralto Corporation (VLTO): Free Stock Analysis Report

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

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