Western Union (WU) Stock Declines While Market Improves: Some Information for Investors
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The latest trading session saw Western Union (WU) ending at $9.31, denoting a -1.06% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw an increase of 0.32%.
Coming into today, shares of the money transfer company had lost 2.59% in the past month. In that same time, the Business Services sector lost 1%, while the S&P 500 gained 5.2%.
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The investment community will be closely monitoring the performance of Western Union in its forthcoming earnings report. The company's upcoming EPS is projected at $0.44, signifying steadiness compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.03 billion, indicating a 3.44% downward movement from the same quarter last year.
WU's full-year Zacks Consensus Estimates are calling for earnings of $1.77 per share and revenue of $4.12 billion. These results would represent year-over-year changes of +1.72% and -2.11%, respectively.
It is also important to note the recent changes to analyst estimates for Western Union. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. 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 5.31. This represents a discount compared to its industry's average Forward P/E of 15.33.
It's also important to note that WU currently trades at a PEG ratio of 1.41. 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 1.3 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.