Why Western Union Is Poised to Bounce Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, money transfer giant Western Union has earned a respected four-star ranking.
With that in mind, let's take a closer look at Western Union, and see what CAPS investors are saying about the stock right now.
Western Union facts
Headquarters (founded) | Englewood, Colo. (1851) |
Market Cap | $8.2 billion |
Industry | Data processing and outsourced services |
Trailing-12-Month Revenue | $5.7 billion |
Management | CEO Hikmet Ersek (since 2010) CFO Scott Scheirman (since 2006) |
Return on Capital (average, past 3 years) | 21.2% |
Cash/Debt | $1.8 billion / $40 billion |
Dividend Yield | 3.4% |
Competitors | American Express Moneygram International PayPal |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,639 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.
Just last month, one of those Fools, RallyCry, tapped the stock as a particularly attractive bargain opportunity:
Western Union stumbled on earnings and was punished late last fall with a 30% drop. It has recovered slightly, but we are looking at a company that will earn around $1.50 in 2014. What kind of multiple should we put on the company? How about 11x 2014 earnings due to their relatively stable cash flow generation and 3.5% current yield. My 12-18 month price target is $16.50.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Western Union may not be your top choice.
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The article Why Western Union Is Poised to Bounce Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends American Express and Western Union. 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 Motley Fool has a disclosure policy.
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