In the latest market close, Western Union (WU) reached $10.40, with a +0.58% movement compared to the previous day. The stock outpaced the S&P 500’s daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.25%.
Shares of the money transfer company have depreciated by 2.45% over the course of the past month, underperforming the Business Services sector’s gain of 3.28% and the S&P 500’s gain of 1.24%.
The investment community will be closely monitoring the performance of Western Union in its forthcoming earnings report. The company is scheduled to release its earnings on February 4, 2025. The company is forecasted to report an EPS of $0.42, showcasing a 13.51% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, down 2.48% from the prior-year quarter.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Western Union holds a Zacks Rank of #3 (Hold).
In terms of valuation, Western Union is currently trading at a Forward P/E ratio of 5.65. This denotes a discount relative to the industry’s average Forward P/E of 14.23.
Also, we should mention that WU has a PEG ratio of 1.4. 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 1.28.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Read More: Why Western Union (WU) Outpaced the Stock Market Today