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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 $7.36, moving -1.6% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.3% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.86%.
The stock of money transfer company has fallen by 17.53% in the past month, lagging the Business Services sector's loss of 0.74% and the S&P 500's gain of 1.92%.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 2.38% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 1.51% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $4.26 billion. These totals would mark changes of +0.57% and +5.21%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Union. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. Currently, Western Union is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 4.26. This signifies a discount in comparison to the average Forward P/E of 9.44 for its industry.
Investors should also note that WU has a PEG ratio of 0.95 right now. 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. WU's industry had an average PEG ratio of 0.8 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons of all 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.
Be sure to follow all of these stock-moving metrics, and many 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 $7.36, moving -1.6% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.3% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.86%.
The stock of money transfer company has fallen by 17.53% in the past month, lagging the Business Services sector's loss of 0.74% and the S&P 500's gain of 1.92%.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 2.38% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 1.51% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $4.26 billion. These totals would mark changes of +0.57% and +5.21%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Union. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. Currently, Western Union is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 4.26. This signifies a discount in comparison to the average Forward P/E of 9.44 for its industry.
Investors should also note that WU has a PEG ratio of 0.95 right now. 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. WU's industry had an average PEG ratio of 0.8 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.