In the latest close session, Western Union (WU) was down 1.26% at $8.62. This change lagged the S&P 500's daily gain of 0.83%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq increased by 1.02%.
Heading into today, shares of the money transfer company had lost 6.23% over the past month, lagging the Business Services sector's loss of 1.07% and the S&P 500's gain of 4.99%.
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Market participants will be closely following the financial results of Western Union in its upcoming release. The company is predicted to post an EPS of $0.44, indicating constancy compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, down 3.59% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.77 per share and a revenue of $4.12 billion, signifying shifts of +1.72% and -2.18%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Western Union. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Western Union is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 4.93. This indicates a discount in contrast to its industry's Forward P/E of 17.12.
Meanwhile, WU's PEG ratio is currently 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.34.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
