Western Union Company (NYSE: WU) is projecting a -8.77% growth in the next quarter, leaving investors wondering how to maximize their returns. The company, which opened at $11.77 on January 5, 2024, has experienced fluctuations in its stock price, ranging from $10.07 to $14.79 over the past 52 weeks.
In the last 5 years, Western Union’s sales have dropped by -5.12%, while its average yearly earnings per share have recorded a decrease of -1.49%. The company currently has a float of $362.65 million and outstanding shares totaling $373.50 million.
To assess the efficiency of the company, it’s important to consider its profitability indicators. Western Union boasts a gross margin of +37.13, an operating margin of +20.19, and a pretax margin of +22.56. These figures highlight the company’s substantial profitability, despite the projected growth decrease.
Another factor for investors to take into account is the stance of key investors within the Credit Services industry. Western Union Company has an insider ownership of 0.47%, while institutional ownership stands at 93.61%.
Reviewing the results from the last quarter, published on September 29, 2023, the company exceeded expectations by posting $0.43 earnings per share (EPS), surpassing the predicted $0.39 EPS figure by $0.04. Western Union achieved a net margin of +20.37 and generated a remarkable return on equity of 218.53. Market experts predict earnings of $0.39 per share for the current fiscal year.
Looking ahead, Wall Street analysts anticipate an earnings per share decrease of -1.49% for Western Union in the next fiscal year.
Analyzing the current performance indicators, Western Union Company has a price to sales ratio of 0.99 for the trailing twelve months, indicating a potentially undervalued stock. Additionally, its price to free cash flow ratio stands at 7.91, suggesting strong cash flow generation.
In terms of earnings per share, Western Union’s diluted EPS for the trailing twelve months is 1.98, a figure projected to decrease to 0.37 in the next quarter and eventually reach 1.69 within a year.
Examining the stock’s trading patterns, Western Union Company’s 5-day average volume has decreased to 4.88 million compared to its year-to-date volume of 5.25 million. As of the previous 9 days, the stock’s stochastic %D was 40.44%. The Average True Range, which measures volatility, currently sits at 0.24.
Over the past 100 days, Western Union Company’s raw stochastic average was 39.69%, indicating a significant decrease from 59.65% in the past two weeks. The stock has shown a historical volatility of 20.57% in the past 14 days, which is lower than the 25.24% volatility observed in the past 100 days.
At present, Western Union Company has a 50-day Moving Average of $11.85, while its 200-day Moving Average stands at $11.95. In terms of resistance levels, the stock’s first resistance to watch is at $12.08, followed by $12.20 and $12.37. On the other hand, the first support level is at $11.79, with the second support level at $11.62 and the third at $11.50.
With 364,359K outstanding shares and a market cap of 4.36 billion, Western Union Company reported annual sales totaling 4,476 M based on its annual income of 910,600 K. In the last quarter, the company’s sales amounted to 1,098 M, while its income reached 171,000 K.
As investors navigate the -8.77% growth projection for Western Union Company in the next quarter, they should carefully consider the company’s financial indicators and trading patterns. Despite the projected decrease in growth, the company still demonstrates profitability and a solid track record. It is advisable for investors to conduct thorough research and consult with financial experts to determine the best strategies for maximizing their returns.
