IT has been one sector that hasn’t trended down during the pandemic. It has, in fact, gained from the lockdowns and the whole work-from-home trend. Many IT stocks have performed quite well over the last 10 to 12 months. One steady performer is Wex Inc. Its stock has gained 58% since November 2020. Wex Inc is an IT service management company based out of Portland, Maine. It offers payment processing and information management services to the US government and commercial vehicle fleet industry. Wex does business in North America, South America, Europe, Asia, and Australia. Besides fleet solutions, Wex also offers travel and corporate payment processing, transaction monitoring, as well as healthcare payment products.
Wex Inc Company Background
Wex was founded in the year 1983 as Wright Express Corporation. It was a fleet card provider. Fleet cards are used to pay for gasoline and diesel at fuel stations. They are charge cards and are often also used to pay for vehicle maintenance and expenses depending on how the vehicle fleet owner wants the fleet cards to be used. In 2012, Wex acquired Fleet One and started to offer fleet cards to drivers. Wex also has strategic partnerships with Chevron, OnDeck, and GasBuddy to provide a range of services to its customers. To expand its healthcare offerings, Wex acquired a cloud-focused healthcare payments provider called Evolution1 in 2014.
There are many IT stocks that have done well in the last few months. Wex’s stock closed at $200 on 15th January 2021. The stock has gained about 100% since the March 2020 market crash. On a longer-term basis, the stock is up 3X over a 5-year period. Another fleet card company is FleetCor Technologies. Its stock is up 45% since the March 2020 lows and up 2X over a 5-year period.