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Why Western Union (WU) Outpaced the Stock Market Today
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Western Union (WU - Free Report) ended the recent trading session at $12.19, demonstrating a +1.08% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.77% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.
Shares of the money transfer company have depreciated by 8.22% over the course of the past month, underperforming the Business Services sector's loss of 0.77% and the S&P 500's gain of 3.71%.
Market participants will be closely following the financial results of Western Union in its upcoming release. The company's upcoming EPS is projected at $0.44, signifying a 13.73% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.06 billion, indicating a 9.37% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $4.17 billion, representing changes of +1.15% and -4.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Western Union. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Western Union boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Western Union is holding a Forward P/E ratio of 6.85. Its industry sports an average Forward P/E of 14.26, so one might conclude that Western Union is trading at a discount comparatively.
We can additionally observe that WU currently boasts a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Financial Transaction Services industry stood at 0.95 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Western Union (WU) Outpaced the Stock Market Today
Western Union (WU - Free Report) ended the recent trading session at $12.19, demonstrating a +1.08% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.77% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.
Shares of the money transfer company have depreciated by 8.22% over the course of the past month, underperforming the Business Services sector's loss of 0.77% and the S&P 500's gain of 3.71%.
Market participants will be closely following the financial results of Western Union in its upcoming release. The company's upcoming EPS is projected at $0.44, signifying a 13.73% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.06 billion, indicating a 9.37% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $4.17 billion, representing changes of +1.15% and -4.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Western Union. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Western Union boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Western Union is holding a Forward P/E ratio of 6.85. Its industry sports an average Forward P/E of 14.26, so one might conclude that Western Union is trading at a discount comparatively.
We can additionally observe that WU currently boasts a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Financial Transaction Services industry stood at 0.95 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.