Top IT Stocks Rated for Investors by Peter Lynch Strategy

According to a recent report, WEX Inc. and ePlus Inc. are highlighted as top-rated Information Technology stocks. WEX received a strong rating due to its solid fundamentals, while ePlus is noted for its overall performance despite some weaknesses, especially in EPS growth.

Date: 13-09-2024

AI Rating: 7

The report assesses two companies, WEX Inc. and ePlus Inc., based on the P/E/Growth Investor model pioneered by Peter Lynch. Both stocks display favorable characteristics that could positively impact their stock prices.

WEX Inc. (WEX) is a mid-cap growth stock in the Consumer Financial Services industry, achieving a rating of 91% according to Peter Lynch’s strategy. This high score suggests a strong interest in the stock, which indicates that investors may see WEX as a robust investment opportunity. It has passed several crucial metrics, including:

P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
RETURN ON ASSETS: PASS

The high ratings in these various metrics, particularly the EPS growth rate, suggest that WEX is performing well financially, which could lead to an increase in stock price as investor confidence rises.

ePlus Inc. (PLUS), another featured stock, is categorized within the Software & Programming industry and holds a rating of 74%. Although this rating is slightly below the benchmark for strong interest, ePlus has also performed well in several areas, including:

P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS

Despite failing the EPS growth rate test, the other passed criteria indicate a generally strong position, suggesting that investors might still find it valuable even with some concerns over earnings growth potential. However, its rating of 74% implies that ePlus’s stock may not be receiving as much focus from growth-focused investors compared to WEX.

Given this analysis, WEX is likely to experience a boost in its stock price due to strong ratings, while ePlus may see moderate influence on its stock price pending improvement in its EPS growth.

Stocks: WEX PLUS