While The Western Union Company (NYSE: WU) may not be the most well-known stock right now, it has seen a significant movement in its stock price in recent months on the NYSE, reaching highs of US $ 25.17 and falling to lows of US $ 21.61. 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 $ 21.67 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.
Check out our latest review for Western Union
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 intrinsic value of the stock is $ 31.85, which is higher than what the market currently values for the company. This indicates a potential opportunity to buy low. 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.
What does the future of Western Union look like?
Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. 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. With earnings expected to grow in double digits by 11% over the next two years, the outlook is positive for Western Union. It appears that a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.
What this means for you:
Are you a shareholder? Since WU is currently undervalued, maybe now is the time to increase your holdings of stocks. With an optimistic outlook on the horizon, it appears that this growth has not yet been fully reflected in the share price. 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 prosperous future prospects are 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 track record of its management team, in order to make an informed purchase.
In light of this, if you want to do more analysis on the business, it is essential to be aware of the risks involved. At Simply Wall St, we found 1 warning sign for Western Union and we think they deserve your attention.
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.
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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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