WEX

A comparison of two Financial Transaction Services stocks, WEX and Visa, both holding a Zacks Rank #2 (Buy) rating. WEX is identified as the superior value option based on significantly lower valuation metrics, including a forward P/E of 9.35 versus Visa's 27.21, a PEG ratio of 0.83 versus 1.92, and a P/B ratio of 4.75 versus 21. WEX received a Value grade of A while Visa received a D.

Zacks highlights WEX as a compelling value stock opportunity, citing its Zacks Rank #2 (Buy) rating and 'A' Value grade. The company trades at a P/E ratio of 9.68, significantly below its industry average of 17.92, with favorable P/B and P/CF ratios suggesting undervaluation relative to its earnings outlook.

Zacks highlights Evertec (EVTC) and WEX as strong value stocks with Zacks Rank #2 (Buy) ratings and A grades in the Value category. Both companies are trading at attractive valuations compared to their industry averages, with EVTC showing a P/E ratio of 9.42 versus the industry average of 16.94, and WEX trading at a forward P/E of 9.68. The analysis suggests both stocks appear undervalued based on multiple valuation metrics including P/B and P/CF ratios.

Equifax is expected to report Q3 2026 results on October 20 with revenues projected to rise 9.6% year-over-year to $1.7B and EPS growth of 7.8% to $2.20. The company's Workforce Solutions segment is anticipated to grow 12%, while USIS and International segments are expected to show solid margin expansion. However, the Zacks model does not predict an earnings beat due to a negative Earnings ESP of -0.59% and a Zacks Rank of 4 (Sell).

ABM Industries stock has outperformed the market with a 28.2% gain over six months, driven by strong growth in high-margin infrastructure markets including semiconductors, microgrids, and data centers. The company raised FY26 free cash flow guidance to $210M and achieved its below-3X leverage target ahead of schedule. However, macroeconomic headwinds in commercial real estate and airline sectors, combined with rising debt and interest expenses, pose risks to future growth.