Western Union (WU) Ascends But Remains Behind Market: Some Facts to Note
Western Union (WU) ended the recent trading session at $12, demonstrating a +0.17% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.25%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.56%.
The money transfer company's stock has climbed by 0.25% in the past month, falling short of the Business Services sector's gain of 3.75% and the S&P 500's gain of 1.65%.
The investment community will be paying close attention to the earnings performance of Western Union in its upcoming release. On that day, Western Union is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 2.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, down 5.91% from the year-ago period.
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 note any recent changes to analyst estimates for Western Union. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Western Union currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 6.78. For comparison, its industry has an average Forward P/E of 16.61, which means Western Union is trading at a discount to the group.
It's also important to note that WU currently trades at a PEG ratio of 1.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.28.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The Western Union Company (WU) : Free Stock Analysis Report