Western Union (WU) closed at $8.29 in the latest trading session, marking a +2.6% move from the prior day. This move outpaced the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.52%.
The money transfer company's stock has dropped by 1.46% in the past month, exceeding the Business Services sector's loss of 4.93% and lagging the S&P 500's gain of 0.71%.
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. On that day, Western Union is projected to report earnings of $0.43 per share, which would represent a year-over-year decline of 6.52%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, down 1.39% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.7 per share and revenue of $4.08 billion, indicating changes of -2.3% and -3.06%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Western Union. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 no change in the Zacks Consensus EPS estimate. Western Union is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Western Union currently has a Forward P/E ratio of 4.76. Its industry sports an average Forward P/E of 13.82, so one might conclude that Western Union is trading at a discount comparatively.
It is also worth noting that WU currently has a PEG ratio of 2.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.11.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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