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Western Union (WU) Rises Yet Lags Behind Market: Some Facts Worth Knowing
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The most recent trading session ended with Western Union (WU - Free Report) standing at $12.39, reflecting a +0.32% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 1.09%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Heading into today, shares of the money transfer company had lost 1.91% over the past month, lagging the Business Services sector's gain of 0.23% and the S&P 500's gain of 4.44% in that time.
The investment community will be closely monitoring the performance of Western Union in its forthcoming earnings report. The company is forecasted to report an EPS of $0.44, showcasing a 13.73% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.06 billion, indicating a 9.37% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $4.17 billion, which would represent changes of +1.15% and -4.21%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Western Union holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 7.02. This represents a discount compared to its industry's average Forward P/E of 14.85.
We can additionally observe that WU currently boasts a PEG ratio of 1.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Western Union (WU) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The most recent trading session ended with Western Union (WU - Free Report) standing at $12.39, reflecting a +0.32% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 1.09%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Heading into today, shares of the money transfer company had lost 1.91% over the past month, lagging the Business Services sector's gain of 0.23% and the S&P 500's gain of 4.44% in that time.
The investment community will be closely monitoring the performance of Western Union in its forthcoming earnings report. The company is forecasted to report an EPS of $0.44, showcasing a 13.73% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.06 billion, indicating a 9.37% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $4.17 billion, which would represent changes of +1.15% and -4.21%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Western Union holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 7.02. This represents a discount compared to its industry's average Forward P/E of 14.85.
We can additionally observe that WU currently boasts a PEG ratio of 1.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.