Western Union (WU) ended the recent trading session at $8.47, demonstrating a -2.19% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. On the other hand, the Dow registered a gain of 0.74%, and the technology-centric Nasdaq increased by 1.29%.
Heading into today, shares of the money transfer company had gained 22.14% over the past month, outpacing the Business Services sector's gain of 4.27% and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2026. The company's upcoming EPS is projected at $0.43, signifying a 2.38% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.01 billion, showing a 1.83% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.75 per share and a revenue of $4.18 billion, indicating changes of 0% and +3.24%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Union. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.62% fall in the Zacks Consensus EPS estimate. Western Union is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Western Union currently has a Forward P/E ratio of 4.96. Its industry sports an average Forward P/E of 11.89, so one might conclude that Western Union is trading at a discount comparatively.
It is also worth noting that WU currently has a PEG ratio of 1.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 0.89 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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The Western Union Company (WU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).