The Western Union Company (NYSE:WU)
CAPS Rating:
The Company deals in money transfer, providing people with fast, reliable and convenient ways to send money around the world, pay bills and purchase money orders.
The Company deals in money transfer, providing people with fast, reliable and convenient ways to send money around the world, pay bills and purchase money orders.
Recs
The stock got punished back in November and dropped 30% when they lowered guidance (crazy overblown reaction, considering they reported modest growth).
Since then, the tide has begun to turn in Europe and WU has significant business there (25% exposure to Europe). The stock is now very cheap.
They have 150% ROE and a 12.4% Year over Year Earnings Growth (in a bad year for Europe). Plus they have a 6.64 P/E Ratio (earnings growth is double the Price to Earnings ratio). From a technical standpoint it just closed above resistance at its 50 day moving average of $13.37. I see a 50% gain to $20 per share in a year or less. Plus you get a 3.8% dividend while you wait.