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.
Englewood, Colo. (1851)
Data processing and outsourced services
CEO Hikmet Ersek (since 2010)
Return on Capital (average, past 3 years)
Cash / Debt
$1.8 billion / $4.0 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,641 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.
[Western Union] has a admirable competitive advantage that is derived from its business model that takes full advantage of the network effect. As the company ties up loose ends regarding its misstep in Mexico and regulatory issues play out, this stock will be back on track. Very cheap valuation given its future prospects and sustainable moat.
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.
We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Western Union Will Keep Crawling 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.