5-Star Stocks Poised to Pop: Western Union

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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 (NYS: 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$10.2 billion
IndustryData processing and outsourced services
Trailing-12-Month Revenue$5.6 billion
ManagementCEO Hikmet Ersek (since 2010)
CFO Scott Scheirman (since 2006)
Return on Equity (average, past 3 years)22.9%
Cash/Debt$1.4 billion / $3.6 billion
Dividend Yield2.4%
CompetitorsAmerican Express
Moneygram International
PayPal

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

On CAPS, 97% of the 1,510 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, mitleg, offered a nicely balanced take on the opportunity:

Cheap by most measurements, except price to book. Moderate projected earnings. Low [PEG ratio]. The big concern is debt. There is a lot of it. On the positive side, is that it has a nice moat. Seems like it is do for a bounce after getting beaten down a lot.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Western Union may not be your top choice.

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The article 5-Star Stocks Poised to Pop: Western Union originally appeared on Fool.com.

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 recommended creating a write covered strangle position in American Express. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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