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Western Union (WU) Stock Drops Despite Market Gains: Important Facts to Note
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Western Union (WU - Free Report) closed the most recent trading day at $9.25, moving -2.53% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.47%.
Shares of the money transfer company have depreciated by 1.15% over the course of the past month, underperforming the Business Services sector's loss of 1.02%, and outperforming the S&P 500's loss of 1.88%.
The investment community will be closely monitoring the performance of Western Union in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.4, marking a 2.44% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $968.05 million, indicating a 1.58% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $4.18 billion, representing changes of +2.29% and +3.22%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Western Union. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. Western Union currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Union has a Forward P/E ratio of 5.31 right now. This denotes a discount relative to the industry average Forward P/E of 11.93.
One should further note that WU currently holds a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 0.92 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Western Union (WU) Stock Drops Despite Market Gains: Important Facts to Note
Western Union (WU - Free Report) closed the most recent trading day at $9.25, moving -2.53% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.47%.
Shares of the money transfer company have depreciated by 1.15% over the course of the past month, underperforming the Business Services sector's loss of 1.02%, and outperforming the S&P 500's loss of 1.88%.
The investment community will be closely monitoring the performance of Western Union in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.4, marking a 2.44% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $968.05 million, indicating a 1.58% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $4.18 billion, representing changes of +2.29% and +3.22%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Western Union. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. Western Union currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Union has a Forward P/E ratio of 5.31 right now. This denotes a discount relative to the industry average Forward P/E of 11.93.
One should further note that WU currently holds a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 0.92 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.