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Western Union (WU) Stock Sinks As Market Gains: What You Should Know
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Western Union (WU - Free Report) closed at $9.32 in the latest trading session, marking a -2.51% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.52%.
Shares of the money transfer company have appreciated by 13.54% over the course of the past month, outperforming the Business Services sector's gain of 7.31%, and the S&P 500's gain of 3%.
The upcoming earnings release of Western Union will be of great interest to investors. The company is predicted to post an EPS of $0.43, indicating a 7.5% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, down 1.14% from the year-ago period.
WU's full-year Zacks Consensus Estimates are calling for earnings of $1.73 per share and revenue of $4.09 billion. These results would represent year-over-year changes of -0.57% and -2.88%, respectively.
It is also important to note the recent changes to analyst estimates for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Western Union presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Union has a Forward P/E ratio of 5.52 right now. This represents a discount compared to its industry average Forward P/E of 14.68.
One should further note that WU currently holds a PEG ratio of 2.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.03.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% 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.
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) Stock Sinks As Market Gains: What You Should Know
Western Union (WU - Free Report) closed at $9.32 in the latest trading session, marking a -2.51% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.52%.
Shares of the money transfer company have appreciated by 13.54% over the course of the past month, outperforming the Business Services sector's gain of 7.31%, and the S&P 500's gain of 3%.
The upcoming earnings release of Western Union will be of great interest to investors. The company is predicted to post an EPS of $0.43, indicating a 7.5% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, down 1.14% from the year-ago period.
WU's full-year Zacks Consensus Estimates are calling for earnings of $1.73 per share and revenue of $4.09 billion. These results would represent year-over-year changes of -0.57% and -2.88%, respectively.
It is also important to note the recent changes to analyst estimates for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Western Union presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Union has a Forward P/E ratio of 5.52 right now. This represents a discount compared to its industry average Forward P/E of 14.68.
One should further note that WU currently holds a PEG ratio of 2.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.03.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.