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Western Union (WU) Stock Declines While Market Improves: Some Information for Investors

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In the latest market close, Western Union (WU - Free Report) reached $11.78, with a -1.01% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.17%.

Shares of the money transfer company have appreciated by 2.15% over the course of the past month, underperforming the Business Services sector's gain of 5.24% and the S&P 500's gain of 2.92%.

Investors will be eagerly watching for the performance of Western Union in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.44, indicating a 2.33% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.03 billion, showing a 5.91% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $4.18 billion. These totals would mark changes of +1.72% and -4.08%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Western Union. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 0.36% rise in the Zacks Consensus EPS estimate. Currently, Western Union is carrying a Zacks Rank of #3 (Hold).

Investors should also note Western Union's current valuation metrics, including its Forward P/E ratio of 6.74. For comparison, its industry has an average Forward P/E of 16.45, which means Western Union is trading at a discount to the group.

Investors should also note that WU has a PEG ratio of 1.78 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.26 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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