Is WEX a good stock to buy? We came across a bullish thesis on WEX Inc. on X.com by @WenWutY. In this article, we will summarize the bulls’ thesis on WEX. WEX Inc.’s share was trading at $149.42 as of June 1st. WEX’s trailing and forward P/E were 16.83 and 7.73 respectively according to Yahoo Finance.
WEX Inc. operates a commerce platform in the United States and internationally. WEN is presented as an accelerating mobility and payments beneficiary with a potential for significant earnings and multiple expansion upside over the next twelve months. The company operates fleet card solutions for trucking companies, earning transaction-based fees on every gallon of fuel purchased, making it highly sensitive to fuel price dynamics.
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Its Mobility segment represents approximately half of total revenue, meaning movements in fuel prices directly influence earnings power. Each $0.10 per gallon increase in fuel prices adds roughly $0.35 to earnings per share, amplifying the operating leverage embedded in the model.
WEX currently trades at approximately 9x earnings compared to a long-term average of 17x, while macro conditions such as PMI above 50 suggest supportive demand conditions. Management guidance assumes a $3.10 per gallon fuel price environment for 2026, while current prices are closer to $4.02 per gallon, implying a meaningful upside gap versus expectations. On this basis, earnings per share could rise from a guided $17.55 to approximately $20.70 if fuel prices remain elevated, representing about 29% year-on-year growth versus the 9% embedded in guidance.
Combined with a re-rating toward historical valuation levels, the stock could see more than a two times upside over a twelve-month horizon. Additional upside optionality exists if geopolitical disruptions, including potential constraints in the Strait of Hormuz, push fuel prices even higher. The combination of cyclical tailwinds, earnings leverage, and valuation dislocation creates a compelling risk-reward setup with asymmetric upside potential, driven by fuel sensitivity and multiple expansion dynamics over time horizon.
Previously, we covered a bullish thesis on Global Payments Inc. (GPN) by Excelsior Capital in November 2024, which highlighted the payment processing undervaluation, steady EPS growth, and competitive positioning. GPN’s stock price has depreciated by approximately 35.54% since our coverage. @WenWutY shares a similar view but emphasizes fuel-driven earnings leverage in WEX within the payments industry.
WEX Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held WEX at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of WEX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WEX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
