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Western Union (NYSE:WU) Co’s stock reached a 52-week low, trading at $8.28, reflecting a challenging year for the company. Over the past 12 months, the stock has experienced a significant decline, with a 1-year change of -33.25%. Despite the downturn, InvestingPro analysis indicates the stock is trading at an attractive P/E ratio of 3.1 and offers an impressive 11.3% dividend yield. This downturn underscores the various pressures facing the company, as it navigates a competitive landscape and evolving market conditions. The recent low highlights investor concerns and the need for strategic adjustments to regain market confidence. Notable strengths include Western Union’s 20-year track record of consistent dividend payments, though InvestingPro analysis reveals additional insights about the company’s financial health and future prospects in their comprehensive Pro Research Report.
In other recent news, Western Union Co. reported its first-quarter earnings for 2025, meeting Wall Street’s expectations with an earnings per share (EPS) of $0.41. Revenue for the quarter was $984 million, slightly below the anticipated $999.8 million. Despite the revenue miss, Western Union reaffirmed its financial guidance for the year, projecting adjusted revenue between $4.115 billion and $4.215 billion. The company expects gradual improvement throughout the year, with the EuroChange acquisition anticipated to contribute approximately 1% to revenue growth.
Goldman Sachs recently adjusted its outlook on Western Union, lowering the price target from $11.00 to $10.00 while maintaining a Sell rating. The revision came after Western Union’s earnings report revealed lower-than-expected revenue due to ongoing challenges with outbound North American volumes and geopolitical tensions affecting cross-border flows. Meanwhile, JMP analysts maintained a Market Perform rating on the stock, noting limited organic growth prospects despite the company’s efforts under the Evolve 2025 program.
Western Union has seen growth in its digital platform year-over-year, but analysts from JMP observed no substantial progress in achieving top-line growth. The company’s operational efficiency program saved $30 million in the first quarter, and Western Union continues to focus on maintaining strong cash flow and returning capital to shareholders. Despite the challenges, Western Union’s management expressed confidence in achieving its 2025 goals, highlighting the company’s robust international operations and strategic acquisitions.
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