Western Union (WU) closed at $10.45 in the latest trading session, marking a -0.38% move from the prior day. This move lagged the S&P 500’s daily gain of 0.55%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 1.24%.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.42, marking a 13.51% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.03 billion, showing a 2.48% drop compared to the year-ago quarter.
Any recent changes to analyst estimates for Western Union should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Western Union is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 5.73. Its industry sports an average Forward P/E of 14.33, so one might conclude that Western Union is trading at a discount comparatively.
We can also see that WU currently has a PEG ratio of 1.42. 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 1.35 based on yesterday’s closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Research Chief Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report
The Western Union Company (WU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
