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Western Union (WU) Exceeds Market Returns: Some Facts to Consider
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Western Union (WU - Free Report) ended the recent trading session at $9.61, demonstrating a +1.59% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. On the other hand, the Dow registered a gain of 1.35%, and the technology-centric Nasdaq decreased by 0.26%.
Shares of the money transfer company witnessed a gain of 6.17% over the previous month, beating the performance of the Business Services sector with its loss of 0.14%, and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Western Union in its upcoming release. The company is forecasted to report an EPS of $0.43, showcasing a 7.5% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.05 billion, reflecting a 1.14% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.73 per share and a revenue of $4.09 billion, demonstrating changes of -0.57% and -2.88%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Western Union. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.58% increase. Western Union currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Western Union is holding a Forward P/E ratio of 5.46. This valuation marks a discount compared to its industry average Forward P/E of 14.65.
It's also important to note that WU currently trades at a PEG ratio of 2.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. WU's industry had an average PEG ratio of 1.04 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Western Union (WU) Exceeds Market Returns: Some Facts to Consider
Western Union (WU - Free Report) ended the recent trading session at $9.61, demonstrating a +1.59% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. On the other hand, the Dow registered a gain of 1.35%, and the technology-centric Nasdaq decreased by 0.26%.
Shares of the money transfer company witnessed a gain of 6.17% over the previous month, beating the performance of the Business Services sector with its loss of 0.14%, and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Western Union in its upcoming release. The company is forecasted to report an EPS of $0.43, showcasing a 7.5% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.05 billion, reflecting a 1.14% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.73 per share and a revenue of $4.09 billion, demonstrating changes of -0.57% and -2.88%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Western Union. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.58% increase. Western Union currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Western Union is holding a Forward P/E ratio of 5.46. This valuation marks a discount compared to its industry average Forward P/E of 14.65.
It's also important to note that WU currently trades at a PEG ratio of 2.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. WU's industry had an average PEG ratio of 1.04 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.