Western Union (WU) closed the most recent trading day at $11.87, moving +0.94% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.2%.
The money transfer company’s shares have seen a decrease of 0.42% over the last month, not keeping up with the Business Services sector’s gain of 4.61% and the S&P 500’s gain of 1.54%.
The investment community will be closely monitoring the performance of Western Union in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $0.44, reflecting a 2.33% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, down 5.91% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.77 per share and a revenue of $4.18 billion, representing changes of +1.72% and -4.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Western Union. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Western Union possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Western Union is holding a Forward P/E ratio of 6.66. This indicates a discount in contrast to its industry’s Forward P/E of 16.48.
It is also worth noting that WU currently has a PEG ratio of 1.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Financial Transaction Services industry had an average PEG ratio of 1.28 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Western Union Company (WU) : Free Stock Analysis Report
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