5-Star Stocks That Just Got Smoked: Western Union

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, money transfer giant Western Union (NYSE: WU  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Western Union and see what CAPS investors are saying about the stock right now.

Western Union facts

Headquarters (founded)

Englewood, Colo. (1851)

Market Cap

$7.5 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$5.7 billion

Management

CEO Hikmet Ersek (since 2010)
CFO Scott Scheirman (since 2006)

Return on Capital (average, past 3 years)

21.6%

Cash/Debt

$1.4 billion / $3.4 billion

Dividend Yield

4%

Competitors

American Express (NYSE: AXP  )
Moneygram International (NYSE: MGI  )
PayPal

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,582 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, yieldideas, tapped the stock as a particularly solid bargain opportunity:

Western Union is a cash flow machine and in addition to the recent lower guidance which took center stage, management announced another share repurchase program to total $750 [million] or 10% of market cap. Since 2006 it has bought back $4.6 [b]illion of its own shares. ... The money transfer business is just not going away and if [Western Union] as the largest player is facing additional costs, imagine the hardship the smaller competitors are dealing with and how their costs are affected.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Western Union may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 11, 2012, at 1:10 PM, desertcritter wrote:

    Technically speaking, usually whenever a stock hits a 1-day chute, it's a harbinger of bad things to come and the price declines further over the following months dotted with sharp but unsustainable rallies that only last a few days. WU looks like it certainly fits this description. What looks like decent value today could be a fool's trap.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2102642, ~/Articles/ArticleHandler.aspx, 11/26/2014 6:21:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement