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Western Union (WU) Laps the Stock Market: Here's Why
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The most recent trading session ended with Western Union (WU - Free Report) standing at $12.61, reflecting a +1.2% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.08%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 1.58%.
Shares of the money transfer company witnessed a gain of 0.97% over the previous month, beating the performance of the Business Services sector with its loss of 3.28% and the S&P 500's gain of 0.43%.
Investors will be eagerly watching for the performance of Western Union in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2024. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 13.73% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.06 billion, reflecting a 9.37% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.76 per share and a revenue of $4.17 billion, signifying shifts of +1.15% and -4.21%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Western Union presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Western Union is presently being traded at a Forward P/E ratio of 7.08. This valuation marks a discount compared to its industry's average Forward P/E of 15.81.
Meanwhile, WU's PEG ratio is currently 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. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.03.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% 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.
To follow WU in the coming trading sessions, be sure to utilize Zacks.com.
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Western Union (WU) Laps the Stock Market: Here's Why
The most recent trading session ended with Western Union (WU - Free Report) standing at $12.61, reflecting a +1.2% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.08%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 1.58%.
Shares of the money transfer company witnessed a gain of 0.97% over the previous month, beating the performance of the Business Services sector with its loss of 3.28% and the S&P 500's gain of 0.43%.
Investors will be eagerly watching for the performance of Western Union in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2024. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 13.73% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.06 billion, reflecting a 9.37% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.76 per share and a revenue of $4.17 billion, signifying shifts of +1.15% and -4.21%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Western Union presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Western Union is presently being traded at a Forward P/E ratio of 7.08. This valuation marks a discount compared to its industry's average Forward P/E of 15.81.
Meanwhile, WU's PEG ratio is currently 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. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.03.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% 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.
To follow WU in the coming trading sessions, be sure to utilize Zacks.com.