Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, money transfer agent Western Union
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||$11.0 billion|
|Industry||Data processing and outsourced services|
|Trailing-12-Month Revenue||$5.5 billion|
|Management||CEO Hikmet Ersek (since 2010)
CFO Scott Scheirman (since 2006)
|Return on Capital (Average, Past 3 Years)||23.1%|
|Cash/Debt||$1.4 billion / $3.6 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,501 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.
Good buying spot as it issued lower guidance for 2012 and dropped almost 10% instantly.
Consistently profitable with a history of beating estimates. Simple valuations are strong with a Forward P/E of 9-10 and 5 year PEG of only .9. Also boosted its dividend and continued its strong share repurchase policy with $800 million bought back in 2011.
Western Union's operating margins also increased 100 basis points from 2010 and they continue to hold over $2 in cash per share.
Buying for the 2 to 4 year outlook.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a write covered straddle position in Western Union. Motley Fool newsletter services have also recommended creating a write covered strangle position in American Express. Try any of our Foolish newsletter services free for 30 days.