WEX (WEX): Exploring Valuation After Raised Guidance and Strong Q3 Performance

WEX (NYSE:WEX) delivered third-quarter results that came in ahead of forecasts, supported by growth in Benefits and Corporate Payments. The company responded by raising its revenue and earnings outlook for the rest of 2025.

See our latest analysis for WEX.

Despite recent product partnerships and raised full-year guidance fueling optimism about WEX’s growth trajectory, market caution has persisted, as reflected in the company’s 1-year total shareholder return of -11.3% and a year-to-date share price decline of 12%. While new collaborations have expanded WEX’s reach, momentum is yet to turn decisively upward.

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Yet with shares trading well below analyst targets despite raised guidance and positive earnings surprises, the key question for investors is whether WEX offers a genuine value opportunity or if the market is already factoring in its future growth.

Most Popular Narrative: 16% Undervalued

With WEX closing at $154.06 and the prevailing narrative pointing to a fair value closer to $184.56, analysts see meaningful upside potential that contrasts with recent market softness. High expectations for both earnings growth and new business lines underpin this assessment.

The recent signing of a long-term agreement with BP, including both new card sales and the future conversion of BP's existing commercial fleet portfolio, will expand WEX's reach across core fueling segments. It is expected to add 0.5% to 1% to company revenue in the first full year post-conversion, catalyzing revenue acceleration in 2026 and beyond as digital and card-based payments adoption grows across fleet operations.

Read the complete narrative.

Wondering what projections get WEX this premium valuation tag? The narrative hinges on transformative deals, future margin expansion, and a profit trajectory that outpaces legacy norms. Curious about which aggressive forecasts fuel this bold target? The real numbers are one click away.

Result: Fair Value of $184.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing fintech competition and shifts toward electric vehicles could slow WEX’s growth if the company does not respond with timely innovation and diversification.

Find out about the key risks to this WEX narrative.

Build Your Own WEX Narrative

If you see things differently or want to dig into the details yourself, you can shape your own WEX story in just minutes. Do it your way.

A great starting point for your WEX research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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