Western Union (WU) closed the latest trading day at $9.84, indicating a -0.1% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 0.05%.
The money transfer company's shares have seen a decrease of 7.51% over the last month, not keeping up with the Business Services sector's loss of 3.14% and the S&P 500's loss of 3.94%.
Investors will be eagerly watching for the performance of Western Union in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2025. The company is forecasted to report an EPS of $0.42, showcasing a 6.67% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1 billion, showing a 4.6% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.78 per share and a revenue of $4.13 billion, indicating changes of +2.3% and -1.95%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% decrease. Western Union is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Western Union's current valuation metrics, including its Forward P/E ratio of 5.52. This represents a discount compared to its industry's average Forward P/E of 14.64.
One should further note that WU currently holds a PEG ratio of 1.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 1.31 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
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.
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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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