Western Union (WU) closed the most recent trading day at $8.14, moving +2.65% from the previous trading session. This change outpaced the S&P 500's 1.56% gain on the day. Elsewhere, the Dow gained 1.29%, while the tech-heavy Nasdaq added 2.21%.
Prior to today's trading, shares of the money transfer company had lost 5.6% lagged the Business Services sector's loss of 3.52% and the S&P 500's gain of 0.41%.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. The company's earnings report is set to go public on October 23, 2025. The company's upcoming EPS is projected at $0.43, signifying a 6.52% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.02 billion, reflecting a 1.39% fall from the equivalent quarter last year.
WU's full-year Zacks Consensus Estimates are calling for earnings of $1.7 per share and revenue of $4.08 billion. These results would represent year-over-year changes of -2.3% and -3.06%, respectively.
Any recent changes to analyst estimates for Western Union should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Western Union holds a Zacks Rank of #3 (Hold).
With respect to valuation, Western Union is currently being traded at a Forward P/E ratio of 4.67. This denotes a discount relative to the industry average Forward P/E of 14.35.
Meanwhile, WU's PEG ratio is currently 2.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 13% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The Western Union Company (WU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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