We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Western Union (WU) Beats Stock Market Upswing: What Investors Need to Know
Read MoreHide Full Article
Western Union (WU - Free Report) closed at $12.60 in the latest trading session, marking a +1.2% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq added 0.2%.
Prior to today's trading, shares of the money transfer company had gained 2.13% over the past month. This has lagged the Business Services sector's gain of 2.71% and the S&P 500's gain of 3.82% in that time.
Investors will be eagerly watching for the performance of Western Union in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.44, signifying a 13.73% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.06 billion, showing a 9.37% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.76 per share and revenue of $4.17 billion, indicating changes of +1.15% and -4.21%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Western Union. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Western Union presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Western Union is presently trading at a Forward P/E ratio of 7.08. This indicates a discount in contrast to its industry's Forward P/E of 15.33.
Also, we should mention that WU has a PEG ratio of 1.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 1.01 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% 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.
To follow WU in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Western Union (WU) Beats Stock Market Upswing: What Investors Need to Know
Western Union (WU - Free Report) closed at $12.60 in the latest trading session, marking a +1.2% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq added 0.2%.
Prior to today's trading, shares of the money transfer company had gained 2.13% over the past month. This has lagged the Business Services sector's gain of 2.71% and the S&P 500's gain of 3.82% in that time.
Investors will be eagerly watching for the performance of Western Union in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.44, signifying a 13.73% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.06 billion, showing a 9.37% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.76 per share and revenue of $4.17 billion, indicating changes of +1.15% and -4.21%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Western Union. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Western Union presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Western Union is presently trading at a Forward P/E ratio of 7.08. This indicates a discount in contrast to its industry's Forward P/E of 15.33.
Also, we should mention that WU has a PEG ratio of 1.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 1.01 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% 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.
To follow WU in the coming trading sessions, be sure to utilize Zacks.com.