Western Union (WU) Outperforms Broader Market: What You Need to Know

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Western Union (WU) Outperforms Broader Market: What You Need to Know

Western Union (WU) closed at $9.48 in the latest trading session, marking a +1.94% move from the prior day. This move outpaced the S&P 500's daily gain of 1.2%. Meanwhile, the Dow experienced a rise of 1.79%, and the technology-dominated Nasdaq saw an increase of 1.52%.

Shares of the money transfer company witnessed a gain of 1.31% over the previous month, beating the performance of the Business Services sector with its gain of 1.24%, and underperforming the S&P 500's gain of 5.15%.

The upcoming earnings release of Western Union will be of great interest to investors. The company's earnings report is expected on April 24, 2026. The company is expected to report EPS of $0.4, down 2.44% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $968.05 million, indicating a 1.58% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.79 per share and revenue of $4.18 billion. These totals would mark changes of +2.29% and +3.22%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Western Union. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Western Union currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Western Union is holding a Forward P/E ratio of 5.21. This expresses a discount compared to the average Forward P/E of 11.23 of its industry.

It is also worth noting that WU currently has a PEG ratio of 1.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 0.95 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 39% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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