Wright Express Corp – Momentum |
Wright Express Corp (WXS) recently rebounded from a key trend line to move back within striking distance of its recent 52-week high at $53.39. With estimates on the rise off another strong quarter, this Zacks #1 rank stock is on the fast track to momentum.
Company Description
Wright Express Corp, together with its subsidiaries, provides payment processing and information management products and services to commercial and government vehicle fleets in the IS, Canada, New Zealand, Australia and Europe.
Wright Express has been a top momentum player in 2011, hitting a new multi-year high in early May after reporting another strong quarter.
First-Quarter Results
Revenue for the period was up 43% from last year to $120 million. Earnings also came in strong at 75 cents, 8& ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 6% over the last four quarters.
The good quarter was driven by big improvements in a number of key areas, with average number of vehicles serviced worldwide up 21% to 5.4 million while average expenditure per domestic transaction increased 25% to $69.83.
Financial Profile
Wright saw its cash balance improve from last year, with cash and equivalents up $24 million from last year to $36 million against total debt of $1.17 billion.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year up 19 cents to $3.50. The next-year estimate is pegged at $4.09, a bullish 17% growth projection.
Valuation
But in spite of the gains, the valuation still looks solid, with a forward P/E of 15X against its peer average of 19X.
12-Month Chart
On the chart, WXS recently rebounded from a key trend line to move back within striking distance of the recent 52-week high from April. Look for support again from the trend on any additional weakness. Take a look below.
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