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Why Western Union (WU) Outpaced the Stock Market Today
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Western Union (WU - Free Report) closed the most recent trading day at $9.00, moving +1.47% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.83%.
Coming into today, shares of the money transfer company had lost 9.77% in the past month. In that same time, the Business Services sector lost 4.48%, while the S&P 500 gained 0.8%.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.4, signifying a 2.44% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $968.05 million, showing a 1.58% drop compared to the year-ago quarter.
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 pay attention to any latest changes in analyst estimates for Western Union. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Western Union currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Western Union is presently trading at a Forward P/E ratio of 4.97. This valuation marks a discount compared to its industry average Forward P/E of 11.58.
We can additionally observe that WU currently boasts a PEG ratio of 1.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.89.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 31% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why Western Union (WU) Outpaced the Stock Market Today
Western Union (WU - Free Report) closed the most recent trading day at $9.00, moving +1.47% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.83%.
Coming into today, shares of the money transfer company had lost 9.77% in the past month. In that same time, the Business Services sector lost 4.48%, while the S&P 500 gained 0.8%.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.4, signifying a 2.44% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $968.05 million, showing a 1.58% drop compared to the year-ago quarter.
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 pay attention to any latest changes in analyst estimates for Western Union. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Western Union currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Western Union is presently trading at a Forward P/E ratio of 4.97. This valuation marks a discount compared to its industry average Forward P/E of 11.58.
We can additionally observe that WU currently boasts a PEG ratio of 1.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.89.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 31% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.