Western Union (WU) Shares Fall as Market Rise: What Investors Need to Know

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Western Union (WU – Free Report) ended the most recent trading session at $9.51, representing a -1.86% change from the previous day’s closing price. The company’s shares fell below the S&P 500 Index, which was up 0.16% on the day. On the other hand, the Dow rose 0.17% and the tech-heavy Nasdaq rose 0.26%.

Heading into today, shares of the money transfer company had lost 1.22% in the past month. At the same time, the business services sector gained 3.4% and the S&P 500 gained 1.89%.

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The upcoming publication of Western Union’s results will be of great interest to investors. The company’s EPS is expected to be $0.43, up 7.5% from the same quarter last year. Meanwhile, the latest consensus estimates are calling for revenue of $1.05 billion, down 1.14% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.73 per share and revenue of $4.09 billion, which would represent changes of -0.57% and 0%, respectively, from the prior year.

Investors should also take into account any recent analyst estimate revisions for Western Union. Such recent developments usually indicate a changing landscape of short-term business trends. As a result, upward estimate revisions reflect analysts’ positive attitude towards the business and its ability to generate profits.

Our research suggests that these estimate changes are directly related to upcoming share price movements. To leverage this, we have created the Zacks Rank, a unique model which takes 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. The Zacks Consensus EPS estimate has remained unchanged within the past 30 days. Currently, Western Union boasts a Zacks Rank of #2 (Buy).

From a valuation standpoint, Western Union is currently changing hands with a forward P/E ratio of 5.43. The average Forward P/E in this industry is 13.36, so we could say that Western Union is trading at a relative discount.

It should also be noted that WU currently has a PEG ratio of 2.92. The PEG ratio is similar to the commonly used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. At yesterday’s closing price, Financial Transaction Services held an average PEG ratio of 1.

The financial transaction services industry is part of the business services sector. The industry currently has a Zacks Industry Rank of 182, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst based on the average Zacks Rank of the individual companies within each of these sectors. Our research shows that industries that receive a top 50% rating outperform the bottom half by a factor of 2 to 1.

Be sure to utilize Zacks.com to stay up to date with all stock-moving indicators, including during the next trading sessions.


Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days. Click to get this free report

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