The Western Union Company (NYSE: WU) is not the largest company in the market, but it has seen a significant movement in its stock price in recent months on the NYSE, reaching highs of US $ 23.64 and falling to lows of US $ 19.84. Certain movements in stock prices can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to be answered is whether Western Union’s current price of US $ 20.66 reflects the true value of the mid-cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of Western Union based on the most recent financial data to see if there are any catalysts for a price change.
What is the opportunity in Western Union?
Good news for investors – Western Union is still trading for a fairly low price. According to my assessment, the stock’s intrinsic value is $ 30.20, but it is currently trading at US $ 20.66 in the stock market, which means there is still an opportunity to buy now. . However, there may be another chance to buy again in the future. This is because Western Union’s beta (a measure of stock price volatility) is high, which means its price movements will be inflated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Western Union?
NYSE: WU Profit and Revenue Growth September 28, 2021
Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s also take a look at the future expectations of the business. However, with relatively moderate earnings growth of 6.8% expected over the next two years, growth does not appear to be a key factor in a buying decision for Western Union, at least in the near term.
What this means for you:
Are you a shareholder? Even though the growth is relatively subdued, given that WU is currently undervalued, perhaps now is a great time to build up more of your holdings in the stock. However, there are also other factors such as financial health to consider which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping your eye on WU for a while, maybe now is the time to get into the stock. Its future outlook is not yet fully reflected in the current share price, which means it is not too late to buy WU. But before making any investment decisions, consider other factors such as the strength of your balance sheet, in order to make an informed purchase.
If you want to dive deeper into Western Union, you will also take a look at the risks it currently faces. During our analysis, we found that Western Union has 1 warning sign and it would be unwise to ignore it.
If you’re no longer interested in Western Union, you can use our free platform to view our list of over 50 other high growth stocks.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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