Why Western Union Is Ready to Rebound

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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 respected four-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

$8.9 billion


Data processing and outsourced services

Trailing-12-Month Revenue

$5.7 billion


CEO Hikmet Ersek (since 2010)

CFO Scott Scheirman (since 2006)

Return on Capital (average, past 3 years)



$1.4 billion/$3.4 billion

Dividend Yield



American Express (NYSE: AXP  )

Moneygram International (NASDAQ: MGI  )


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

On CAPS, 97% of the 1,638 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, 20 punches, tapped the stock as a particularly attractive bargain opportunity:

[Western Union's] business model has come into question due to threats from new technology, but I think [Western Union] is more stable than people realize, and this firesale price offers a margin of safety in case that assumption is not as correct as I'm hoping.

[Western Union] is a CONSISTENT CASH FOUNTAIN, with very high market share, huge returns on equity, a great dividend, and the capacity for HUGE share buybacks.

Earnings yield is about 14%, and free cash flow yield is about 11%.

I'm a tad late on this one, but I think it'll still pan out just fine. Heads I win, tails I don't lose much.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-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.

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Related Tickers

9/30/2016 1:04 PM
AXP $64.18 Up +0.81 +1.28%
American Express CAPS Rating: ****
MGI $7.07 Up +0.20 +2.93%
MoneyGram Internat… CAPS Rating: *
WU $20.77 Up +0.28 +1.37%
Western Union CAPS Rating: ***