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Western Union (WU) closed the latest trading day at $10.77, indicating a +0.28% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 1.59%. On the other hand, the Dow registered a loss of 0.45%, and the technology-centric Nasdaq decreased by 2.78%.
Prior to today's trading, shares of the money transfer company had gained 3.87% over the past month. This has outpaced the Business Services sector's gain of 2.76% and the S&P 500's loss of 2.23% in that time.
Investors will be eagerly watching for the performance of Western Union in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 2.22% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, down 3.75% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.79 per share and revenue of $4.14 billion, indicating changes of +2.87% and -1.75%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Western Union. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has moved 2.16% lower. Western Union is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Western Union is currently trading at a Forward P/E ratio of 6. This expresses a discount compared to the average Forward P/E of 14.71 of its industry.
Also, we should mention that WU has a PEG ratio of 1.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.32.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.