雅虎香港財經 Are Investors Undervaluing Western Union (WU) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Western Union (WU). WU is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WU has a P/S ratio of 0.94. This compares to its industry's average P/S of 2.56.
Finally, we should also recognize that WU has a P/CF ratio of 5.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. WU's current P/CF looks attractive when compared to its industry's average P/CF of 17.16. Over the past 52 weeks, WU's P/CF has been as high as 6.28 and as low as 4.41, with a median of 5.28.
These are only a few of the key metrics included in Western Union's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WU looks like an impressive value stock at the moment.
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The Western Union Company (WU) : Free Stock Analysis Report
