Recs

13

5-Star Stocks Poised to Pop: Western Union

Based on the aggregated intelligence of 145,000-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

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

Headquarters (Founded)

Englewood, Colo. (1851)

Market Cap

$12.86 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$5.06 billion

Management

CEO Christina Gold

CFO Scott Scheirman

Return on Capital (Average, Past 3 Years)

27.4%

Cash / Debt

$1.63 billion / $3.05 billion

Competitors

American Express (NYSE: AXP  )

MoneyGram International (NYSE: MGI  )

CAPS Members Bullish on WU Also Bullish on

Johnson & Johnson (NYSE: JNJ  )

General Electric (NYSE: GE  )

CAPS Members Bearish on WU Also Bearish on

Capital One Financial (NYSE: COF  )

Activision Blizzard (Nasdaq: ATVI  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,391 members who have rated Western Union believe the stock will outperform the S&P 500 going forward. These bulls include diversey and All-Star dudemonkey, who is ranked in the top 17% of our community.

In late December, diversey reminded Fools that Western Union "is the first brand you think of when you want to transfer money." Our CAPS member continues: "My hope is that this is a long term hold and that the dividend continues to grow. Mmmm, dividends are tasty."

In an earlier pitch, dudemonkey touches on what makes the business model so beautiful:

You go to [Western Union] and give them money. They then turn around and give someone else LESS MONEY. Multiply that by 350,000 locations worldwide and you'll see why I like this business. It's got a great brand (ask 10 people to name 1 other way to send money internationally), over a century-long track record of innovation, and they are paying down the debt they were saddled with after being spun off of First Data.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. American Express and Western Union are Motley Fool Inside Value choices. Activision Blizzard and Western Union are Motley Fool Stock Advisor recommendations. Johnson & Johnson is a Motley Fool Income Investor pick. Motley Fool Options has recommended a synthetic long position on Activision Blizzard. Motley Fool Options has recommended a write puts position on Western Union. The Fool owns shares of Activision Blizzard. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/10/2012 4:00 PM
WU $17.59 Down -0.16 -0.87%
Western Union CAPS Rating: *****
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