Western Union (WU) closed at $9.13 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the money transfer company have depreciated by 4.15% over the course of the past month, underperforming the Business Services sector's gain of 3.09%, and the S&P 500's gain of 6.6%.
The investment community will be paying close attention to the earnings performance of Western Union in its upcoming release. It is anticipated that the company will report an EPS of $0.44, marking stability compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, down 3.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.77 per share and a revenue of $4.12 billion, demonstrating changes of +1.72% and -2.11%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Western Union. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. Western Union currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Western Union is currently trading at a Forward P/E ratio of 5.22. For comparison, its industry has an average Forward P/E of 15.67, which means Western Union is trading at a discount to the group.
One should further note that WU currently holds a PEG ratio of 1.39. 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 1.39 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Western Union Company (WU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
