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Western Union (WU) Stock Drops Despite Market Gains: Important Facts to Note
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The most recent trading session ended with Western Union (WU - Free Report) standing at $12.77, reflecting a -0.93% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.35%.
Prior to today's trading, shares of the money transfer company had lost 3.08% over the past month. This has lagged the Business Services sector's loss of 0.47% and the S&P 500's gain of 3.25% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. In that report, analysts expect Western Union to post earnings of $0.44 per share. This would mark a year-over-year decline of 13.73%. Alongside, our most recent consensus estimate is anticipating revenue of $1.06 billion, indicating a 9.37% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.76 per share and a revenue of $4.17 billion, demonstrating changes of +1.15% and -4.21%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Union. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Western Union is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Western Union is presently being traded at a Forward P/E ratio of 7.33. This denotes a discount relative to the industry's average Forward P/E of 14.6.
It is also worth noting that WU currently has a PEG ratio of 1.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.96.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Western Union (WU) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with Western Union (WU - Free Report) standing at $12.77, reflecting a -0.93% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.35%.
Prior to today's trading, shares of the money transfer company had lost 3.08% over the past month. This has lagged the Business Services sector's loss of 0.47% and the S&P 500's gain of 3.25% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. In that report, analysts expect Western Union to post earnings of $0.44 per share. This would mark a year-over-year decline of 13.73%. Alongside, our most recent consensus estimate is anticipating revenue of $1.06 billion, indicating a 9.37% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.76 per share and a revenue of $4.17 billion, demonstrating changes of +1.15% and -4.21%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Union. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Western Union is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Western Union is presently being traded at a Forward P/E ratio of 7.33. This denotes a discount relative to the industry's average Forward P/E of 14.6.
It is also worth noting that WU currently has a PEG ratio of 1.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.96.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.