WEX Story

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WEX -- USA Stock  

USD 137.84  2.90  2.06%

As many millenniums are trying to avoid technology space, it makes sense to break down WEX Inc a little further and try to understand its current market patterns. As we have suggested previously, WEX is beginning its slide as investors shift to be more bearish due to the increased sector volatility. The returns on investing in WEX and the market returns of the last few months appear uncorrelated. Weak forward indicators of the company may also suggest signs of long term losses for WEX investors. WEX Inc is scheduled to announce its earnings today. The next earnings report is expected on the 29th of October 2020.
Published over a month ago
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Should I shadow WEX Inc (NYSE:WEX) investors?
The company's average rating is Buy from 14 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on WEX market sentiment investors' perception of the future value of WEX. Let us look at a few aspects of WEX technical analysis. The company has Net Profit Margin of 7.14 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 23.09 %, which entails that for every 100 dollars of revenue, it generated 0.23 of operating income.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of WEX Inc. In general, we focus on analyzing WEX stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build WEX's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of WEX's intrinsic value. In addition to deriving basic predictive indicators for WEX, we also check how macroeconomic factors affect WEX price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does WEX Stands against Peers?

Analyzing WEX competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to WEX across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out WEX Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for WEX, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Roberto Simon of 13568 shares of WEX subject to Rule 16b-3

Legal trades by WEX insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
WEX insider trading alert for exercise of stock option (right to buy) by Roberto Simon, Chief Financial Officer, on 6th of August 2020. This event was filed by Wex Inc with SEC on 2020-08-06. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at WEX Mean Deviation

WEX Inc has current Mean Deviation of 3.18. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation 
 = 
SUM(RET DEV) 
 = 
3.18
SUM = Summation notation
RET DEV = Sum of return deviations of WEX
N = Number of calculation points for selected time horizon
Let's now compare WEX Mean Deviation to its closest peers:
WEX
ADBE
VRSN
MSFT
SQ
WEX3.1823983415977963
ADBE1.61
VRSN1.25
MSFT1.35
SQ2.87

Chances of WEX to retake control

Value At Risk just dropped to -4.45, may suggest upcoming price depreciation. WEX Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect WEX Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of WEX future alpha.

The Bottom Line

While some companies within the software?infrastructure industry are still a little expensive, even after the recent corrections, WEX may offer a potential longer-term growth to investors. To summarize, as of the 30th of July 2020, our current 30 days 'Buy-Sell' recommendation on the company is Sell. However, we believe WEX is currently fairly valued with below average chance of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of WEX Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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