Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, money transfer agent Western Union (NYSE: WU) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Western Union's business, and see what CAPS investors are saying about the stock right now.
Western Union facts
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Headquarters (founded)
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Englewood, Colorado (1851)
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Market Cap
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$9.08 billion
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Industry
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Personal Services
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TTM Revenue
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$5.3 billion
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Management
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CEO Christina Gold
CFO Scott Scheirman
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Return on Capital (average last two years)
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28.25%
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Competitors
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MoneyGram International (NYSE: MGI),
Global Payments (NYSE: GPN)
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CAPS members bullish on WU also bullish on
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Microsoft (Nasdaq: MSFT),
General Electric (NYSE: GE)
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CAPS members bearish on WU also bearish on
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Citigroup (NYSE: C),
General Motors (NYSE: GM)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 1,015 of the 1,044 members who have rated Western Union -- some 97% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include BeachExec and zubikov.
In late October, BeachExec touched on Western Union's attractive price: “Strong cash generator. Hammered for not providing guidance next quarter but this company is well managed and will beat the market over time.”
In an earlier pitch from August, zubikov shared that sentiment, stressing the stock's long-term tailwinds:
This company will thrive because of increased international electronic cash flow. If they keep fraud in check, they will do very well as they are the only truly established trusted wire transfer company with branches in many developing countries. Just ask any of your friends that have family abroad, and how remittances are sent; it's very likely that someone they know uses Western Union.
Markets may go up and down. Currencies appreciate and fall. Inflation and rates are going wild...In the meantime, Western Union can't count its cash fast enough!
What do you think about Western Union, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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