Western Union (WU) closed at $10.54 in the latest trading session, marking a +0.19% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.89%.
Heading into today, shares of the money transfer company had lost 2.14% over the past month, outpacing the Business Services sector's loss of 2.5% and lagging the S&P 500's loss of 1.56% in that time.
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 $0.42, indicating a 13.51% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, down 2.48% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Western Union. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Western Union is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Western Union is currently trading at a Forward P/E ratio of 5.75. This signifies a discount in comparison to the average Forward P/E of 14.01 for its industry.
We can also see that WU currently has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 1.17 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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