Why Western Union Is Poised to Bounce Back

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

$8.2 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)

21.2%

Cash/Debt

$1.8 billion / $40 billion

Dividend Yield

3.4%

Competitors

American Express 

Moneygram International 

PayPal

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

On CAPS, 97% of the 1,639 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, RallyCry, tapped the stock as a particularly attractive bargain opportunity:

Western Union stumbled on earnings and was punished late last fall with a 30% drop. It has recovered slightly, but we are looking at a company that will earn around $1.50 in 2014. What kind of multiple should we put on the company? How about 11x 2014 earnings due to their relatively stable cash flow generation and 3.5% current yield. My 12-18 month price target is $16.50.

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.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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 (0)

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.

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: 2328459, ~/Articles/ArticleHandler.aspx, 10/22/2014 10:23:47 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...

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASD 4,382.85 -36.63 -0.83%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/22/2014 4:00 PM
WU $16.22 Down -0.33 -1.99%
Western Union CAPS Rating: ***

Advertisement