WEX (WEX) Slid on Competitive Pressure

Janus Henderson Investors, an investment management company, released its “Janus Henderson Enterprise Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -2.84% in the second quarter, compared to the Russell Midcap Growth Index’s -3.21% return.  The firm is committed to a disciplined, risk-aware investment approach that considers fundamentals and relative valuations. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Janus Henderson Enterprise Fund highlighted stocks like WEX Inc. (NYSE:WEX), in the second quarter 2024 investor letter. WEX Inc. (NYSE:WEX) is a US-based commerce platform operator that offers payment processing and information management solutions. The one-month return of WEX Inc. (NYSE:WEX) was 9.46%, and its shares gained 11.96% of their value over the last 52 weeks. On September 27, 2024, WEX Inc. (NYSE:WEX) stock closed at $209.10 per share with a market capitalization of $8.591 billion.

Janus Henderson Enterprise Fund stated the following regarding WEX Inc. (NYSE:WEX) in its Q2 2024 investor letter:

“WEX Inc. (NYSE:WEX) was a relative detractor after outperforming in the first quarter. WEX issues credit cards that help manage fleet fuel costs. It also owns a cloud-based software platform that supports digital payments for health savings accounts and travel bookings. The stock declined on concerns over competitive pressures for this payments business, especially after WEX’s customer Booking.com contracted to take more of its payments business back in house. While this decision may impact WEX’s near-term revenue growth, its new contract with Booking.com offers opportunities for additional business wins over the medium term. We felt the sell-off in the stock was out of line with fundamentals and held onto the position.”

An executive standing in front of a large monitor that shows payment processing information.

WEX Inc. (NYSE:WEX) is not on our list of 31 Most Popular Stocks Among Hedge Funds.  As per our database, 40 hedge fund portfolios held WEX Inc. (NYSE:WEX) at the end of the second quarter which was 32 in the previous quarter. In the second quarter, WEX Inc. (NYSE:WEX) achieved $673 million in revenues, marking an 8% year-over-year increase. While we acknowledge the potential of WEX Inc. (NYSE:WEX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed WEX Inc. (NYSE:WEX) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.