The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.

Western Union Company (The)

Western Union (WU) closed at $9.13 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the money transfer company have depreciated by 4.15% over the course of the past month, underperforming the Business Services sector's gain of 3.09%, and the S&P 500's gain of 6.6%.
The investment community will be paying close attention to the earnings performance of Western Union in its upcoming release. It is anticipated that the company will report an EPS of $0.44, marking stability compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, down 3.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.77 per share and a revenue of $4.12 billion, demonstrating changes of +1.72% and -2.11%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Western Union. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. Western Union currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Western Union is currently trading at a Forward P/E ratio of 5.22. For comparison, its industry has an average Forward P/E of 15.67, which means Western Union is trading at a discount to the group.
One should further note that WU currently holds a PEG ratio of 1.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 1.39 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Western Union Company (WU) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Western Union (WU) Stock Slides as Market Rises: Facts to Know Before You Trade

Edit Watchlist
Add up to 20 symbols
To add symbols:
Type a symbol or company name. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return.
Copy and paste multiple symbols separated by spaces.
These symbols will be available throughout the site during your session.

Western Union To Present At Bernstein Strategic Decision Conference; Webcast At 9:00 AM ET

Fidelity National Information Services, Inc. FIS reported first-quarter 2025 adjusted earnings per share (EPS) of $1.21, which beat the Zacks Consensus Estimate by 0.8% and came within the management’s expected range of $1.17-$1.22. The bottom line advanced 11% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Revenues amounted to $2.532 billion, which improved 3% year over year and surpassed management’s projected range of $2.485-$2.510 billion. The top line surpassed the consensus mark by 1.1%.
The quarterly results gained momentum from strength in the Capital Market Solutions segment, which posted 8% revenue growth and a 90-bps EBITDA margin improvement, driven by strong recurring revenues. A decline in selling, general and administrative (SG&A) expenses also contributed to the upside. However, the upside was partly offset by rising cost of revenues and pressure on the Banking Solutions unit due to incurrence of higher license and termination fee revenues in the prior-year quarter.
Fidelity National Information Services, Inc. Price, Consensus and EPS Surprise
Fidelity National Information Services, Inc. price-consensus-eps-surprise-chart | Fidelity National Information Services, Inc. Quote
Q1 Performance
The cost of revenues increased 6% year over year to $1.7 billion in the quarter under review. SG&A expenses of $558 million declined 2.6% year over year but came higher than our estimate of $514.8 million. Net interest expenses of $80 million increased 3.9% year over year but was lower than our estimate of $85 million.
Adjusted EBITDA was $956 million, which tumbled 17.3% year over year but beat our estimate of $950.9 million. Adjusted EBITDA margin deteriorated 142 basis points (bps) year over year to 37.8%.
Segmental Update
Revenues from the Banking Solutions unit totaled $1.72 billion, which grew 2% year over year in the first quarter. The metric outpaced the Zacks Consensus Estimate of $1.71 billion and our estimate of $1.69 billion. The segment’s results were aided by higher recurring revenues, partially offset increased license and termination fee revenues in the prior-year quarter. Adjusted EBITDA margin deteriorated 379 bps year over year to 40.1%.
The Capital Market Solutions segment’s revenues advanced 8% year over year to $764 million, higher than the consensus mark of $756.4 million and our estimate of $755.4 million. Strong recurring and non-recurring revenue growth benefited the metric. Adjusted EBITDA margin of 48.3% improved 90 bps year over year on the back of improved operating leverage and high-margin license revenues.
The Corporate and Other segment recorded revenues of $50 million in the quarter under review, which dropped 36% year over year. The metric beat the Zacks Consensus Estimate of $49.6 million and matched our estimate. Adjusted EBITDA loss was $99 million.
Financial Update (As of March 31, 2025)
Fidelity National exited the first quarter with cash and cash equivalents of $805 million, which declined 3.5% from the 2024-end level. Total assets of $32.8 billion decreased 2.8% from the figure at 2024-end.
Long-term debt, excluding current portion, amounted to $8.7 billion. The figure dropped 10.6% from the figure as of Dec. 31, 2024. The current portion of long-term debt totaled $2.3 billion. Short-term borrowings amounted to $1.1 billion at the first-quarter end.
Total equity of $15.1 billion dropped 4% from the 2024-end level.
Fidelity National generated net cash from operations of $457 million in the first quarter, which more than doubled year over year. Adjusted free cash flows of $368 million increased nearly four-fold year over year.
Share Repurchase & Dividend Update
Fidelity National rewarded $670 million to its shareholders to the tune of share buybacks worth $450 million and dividends of $220 million in the first quarter.
Management reaffirmed its target of conducting share buybacks of around $1.2 billion in 2025. It intends to maintain quarterly dividend payments such that dividend per share growth stays in line with the growth in adjusted EPS.
2Q25 View
Management forecasts revenues to be between $2.560 billion and $2.585 billion. Adjusted EBITDA is projected to be in the range of $1.020-$1.035 billion. Adjusted EPS is estimated to be between $1.34 and $1.38. Adjusted EBITDA margin is projected within 39.8-40%.
2025 Guidance Reaffirmed
Revenues are expected to be within $10.435-$10.495 billion for 2025. Adjusted revenues are estimated to witness year-over-year growth of 4.6-5.2%. The Banking Solutions and Capital Market Solutions units are estimated to record year-over-year increases of 3.7-4.4% and 6.5-7%, respectively.
Adjusted EBITDA is projected to be between $4.305 billion and $4.335 billion in 2025, the mid-point of which implies 4.4% growth from the 2024 figure. Adjusted EBITDA margin is anticipated to be around 41.3%.
Adjusted EPS is expected to be between $5.70 and $5.80, the mid-point of which suggests 10.2% growth from the 2024 figure.
Zacks Rank
Fidelity National currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Business Services Sector Releases
Of the other Business Services sector industry players that have reported March-quarter results so far, the bottom-line results of Mastercard Incorporated MA, The Western Union Company WU and Visa Inc. V beat the respective Zacks Consensus Estimate.
Mastercard reported first-quarter 2025 adjusted earnings of $3.73 per share, which surpassed the Zacks Consensus Estimate by 4.5%. The bottom line improved 13% year over year. Net revenues of the leading technology company in the global payments industry advanced 14% year over year to $7.3 billion. The top line beat the consensus mark by 1.8%. Gross dollar volume (representing the aggregated dollar amount of purchases made and cash disbursements obtained from Mastercard-branded cards) increased 9% on a local-currency basis to $2.4 trillion.
Cross-border volumes (a key measure that tracks spending on cards beyond the issuing country) rose 15% on a local currency basis. Switched transactions, which indicate the number of times a company’s products have been used to facilitate transactions, improved 9% year over year to 40.1 billion. Value-added services and solutions’ net revenues of $2.8 billion advanced 16% year over year. Mastercard’s clients issued 3.5 billion Mastercard and Maestro-branded cards as of March 31, 2025.
Western Union’s first-quarter 2025 adjusted EPS of 41 cents beat the Zacks Consensus Estimate by 2.5%. However, the bottom line declined 8.9% year over year. Total revenues were $983.6 million, which fell 6% on a reported basis. Additionally, the top line missed the Zacks Consensus Estimate by 0.8%. The adjusted operating margin decreased 100 bps year over year to 19% due to a fall in contributions from Iraq.
Operating income of $177.4 million declined 8% year over year and lagged our estimate of $185.2 million. The Consumer Money Transfer segment’s revenues fell 9% to $872.9 million. Operating income was $159.3 million, which fell 15% year over year and also missed the consensus estimate. Transactions within the CMT segment grew 3% year over year. Branded Digital revenues, which accounted for 28% of CMT’s first-quarter revenues, improved 7% on a reported basis and 8% on an adjusted basis.
Visa reported second-quarter fiscal 2025 EPS of $2.76, which outpaced the Zacks Consensus Estimate of $2.68 by 3%. The bottom line increased 10% year over year. Net revenues of $9.6 billion improved 9.3% year over year. The top line beat the consensus mark by 0.3%. Visa's payments volume increased 8% year over year on a constant-dollar basis in the fiscal second quarter. Processed transactions (implying transactions processed by Visa) grew 9% year over year to 60.7 billion.
On a constant-dollar basis, the cross-border volume of Visa rose 13% year over year. Excluding transactions within Europe, its cross-border volume (that boosts a company’s international transaction revenues) also jumped 13% year over year on a constant-dollar basis. Service revenues (depending on the payment volume in the previous quarter) increased 9% year over year to $4.4 billion in the March quarter. Data processing revenues of $4.7 billion grew 10.4% year over year.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
The Western Union Company (WU) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Fidelity National Q1 Earnings Beat on Improved Recurring Revenues

Financial services technology solutions provider Fidelity National Information Services, Inc. FIS is set to report first-quarter 2025 results on May 6, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.20 per share, and the same for revenues is pinned at $2.5 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The first-quarter earnings estimate remained stable over the past 60 days. The bottom-line prediction indicates a year-over-year increase of 9.1%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 1.7%.
Image Source: Zacks Investment Research
For 2025, the Zacks Consensus Estimate for Fidelity National’s revenues is pegged at $10.5 billion, implying a rise of 3.4% year over year. Meanwhile, the consensus mark for current year EPS is pegged at $5.74, implying growth of around 10 % on a year-over-year basis.
Fidelity National beat the consensus estimate in each of the last four quarters, with the average surprise being negative 9.4%.
Fidelity National Information Services, Inc. Price and EPS Surprise
Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote
Q1 Earnings Whispers for Fidelity National
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
FIS has an Earnings ESP of +0.76% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What is Shaping Fidelity National’s Q1 Results?
The Zacks Consensus Estimate for Banking Solutions revenues indicates a 1.3% year-over-year increase. Similarly, both the consensus mark and our model estimate indicate around a 7% increase in revenues from Capital Market Solutions compared with the same quarter last year.
Both the consensus estimate and our model estimate for Total Recurring revenues indicate around a 1% increase in the to-be-reported quarter. Looking at the geographical breakdown, both the consensus mark and our model estimate signal 1% and 2% year-over-year growth in North America and All Other revenues, respectively.
The Zacks Consensus Estimate for Capital Market Solutions’ adjusted EBITDA indicates a 7.5% year-over-year increase, whereas our model estimate predicts a nearly 6% growth from the year-ago period. We expect total operating expenses to have declined 2.8% year-over-year.
The factors stated above are likely to have positioned FIS for not only a year-over-year growth but also an earnings beat. However, the Zacks Consensus Estimate for Banking Solutions’ adjusted EBITDA indicates a 2.5% year-over-year decline, partially offsetting the positives. Also, losses from the corporate and other units are likely to have increased in the first quarter.
The company earlier stated that it expects adjusted EBITDA to be in the range of $940-$960 million. Also, adjusted EBITDA margin was projected to be in the range of 37.8-38.2%.
How Did Other Stocks Perform?
Here are some stocks in the broader payments space that have already reported earnings for this quarter: The Western Union Company WU, Discover Financial Services DFS and Visa Inc. V.
Western Union reported first-quarter 2025 adjusted EPS of 41 cents, which beat the Zacks Consensus Estimate by 2.5% due to lower operating expenses, partly offset by Iraq’s low contribution and weakness in the CMT segment’s performance despite rising transactions.
Discover Financial reported first-quarter 2025 adjusted earnings per share of $4.25, which surpassed the Zacks Consensus Estimate by 28.8%, aided by reduced provisions for credit losses, improved net interest margin, and strong income growth in both the Digital Banking and Payment Services segments. However, the upside was partly offset by higher operating costs, a decline in total loans, and lower Payment Services volume.
Visa reported second-quarter fiscal 2025 EPS of $2.76, which outpaced the Zacks Consensus Estimate of $2.68 by 3% thanks to higher processed transactions, payment and cross-border volumes. However, the upside was partly offset by increased operating expenses, primarily personnel costs.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Visa Inc. (V) : Free Stock Analysis Report
Discover Financial Services (DFS) : Free Stock Analysis Report
The Western Union Company (WU) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Fidelity National Beat Q1 Earnings on Capital Market Solutions?

Growth stocks can be exciting. However, intelligent investors understand that big winners don't just come from fast growth, but through a combination of growth at a cheap price.
Many investors forget this value part of the equation in a bull market. They should remind themselves of its importance because several growth stocks right now are still expensive despite going through some volatile swings so far in 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Not Remitly Global (NASDAQ: RELY). The upstart remittance provider keeps taking market share and looks cheap at a market cap of just $4.1 billion. Here's why Remitly is the most intelligent growth stock you can buy for $2,000 today, which will get you 100 shares of this fast-growing stock at its current price of $20.
The growth runway in remittance payments
The remittance market (companies that act as intermediaries in facilitating international money transfers) has gotten a shake-up as digital smartphone-first disrupters reach scale in countries around the globe. Remitly has led the way, now having 7.8 million active customers as of the fourth quarter of 2024, growing 32% year over year.
It is stealing customers from Western Union (NYSE: WU) due to its lower fees and ease of use compared to legacy systems. With smart marketing campaigns to key immigrant groups in the United States, such as Indians and Mexicans, Remitly has been able to grow quickly in the last decade.
Growth should remain strong for the rest of the decade, too. The company has around 3% market share of remittances, processing $15.4 billion in volume just in the fourth quarter of last year.
Its positioning versus Western Union will not change anytime soon, meaning that it has a path to get to 6%, 10%, and eventually a higher share of the remittance market over the next 10 years. Growing volumes sent through the platform directly correlate with revenue growth, although fees as a percentage of volume have declined as the business has scaled up.
Remittances are a growing market, giving Remitly a double tailwind of market-share gains and sector growth that has propelled revenue up 130% cumulatively in the last three years. Western Union's revenue is down 15% over the same time period.
Improving profitability at scale
Historically, the company has not generated much in profits. Its fantastic unit economics are masked by heavy spending on technology rollouts and marketing.
Take its $1.26 billion in 2024 revenue and subtract the transaction and customer support expenses, and the gross margin approaches 60%, even though it posted a slight operating loss last year.
Over $300 million spent on marketing and close to $300 million spent on technology and development expenses keep Remitly's profits low, but it should see operating leverage once it reaches scale. The company is already seeing progress on this front, with Remitly's operating loss approaching breakeven in the fourth quarter last year.
Within the next five years, I expect Remitly's 60% gross margins -- which have expanded over time, by the way -- to lead to bottom-line profit margins approaching 20%. The company will always have overhead, marketing, and development expenses, but these unit economics should create fat profit figures once the business reaches global scale.
Data by YCharts; TTM = trailing 12 months.
Why Remitly is an intelligent stock to buy right now
Remitly stock is attractive right now because investors are underrating the true profit potential of this business at its current market cap of $4.1 billion.
Assuming it can keep up its revenue growth rate, the company should clear well over $3 billion in annual sales five years from now. A 20% profit margin on $3 billion in revenue means $600 million in annual earnings for Remitly, with plenty of growth likely still left in the tank.
That would rapidly bring the price-to-earnings ratio (P/E) down below 10, which indicates that the stock is cheap for those who plan to buy today and hold on for many years. Take a swing at Remitly stock right now with that $2,000 in available investment funds. It is a fantastic growth business trading at a reasonable price compared to other high-flyer stocks today.
Should you invest $1,000 in Remitly Global right now?
Before you buy stock in Remitly Global, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Remitly Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $611,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $684,068!*
Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of April 28, 2025
Brett Schafer has positions in Remitly Global. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Most Intelligent Growth Stock to Buy With $2,000 Today

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P MidCap Low Volatility ETF (Symbol: XMLV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $68.05 per unit.
With XMLV trading at a recent price near $60.10 per unit, that means that analysts see 13.22% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XMLV's underlying holdings with notable upside to their analyst target prices are Encompass Health Corp (Symbol: EHC), Ingredion Inc (Symbol: INGR), and Western Union Co (Symbol: WU). Although EHC has traded at a recent price of $101.41/share, the average analyst target is 15.62% higher at $117.25/share. Similarly, INGR has 15.49% upside from the recent share price of $130.06 if the average analyst target price of $150.20/share is reached, and analysts on average are expecting WU to reach a target price of $11.59/share, which is 13.88% above the recent price of $10.18. Below is a twelve month price history chart comparing the stock performance of EHC, INGR, and WU:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
Invesco S&P MidCap Low Volatility ETF
XMLV
$60.10
$68.05
13.22%
Encompass Health Corp
EHC
$101.41
$117.25
15.62%
Ingredion Inc
INGR
$130.06
$150.20
15.49%
Western Union Co
WU
$10.18
$11.59
13.88%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
ARIA Price Target
CJ Options Chain
Institutional Holders of ENFR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XMLV's Holdings Could Mean 13% Gain Potential

(RTTNews) - Western Union Co (WU) released earnings for first quarter that decreased from the same period last year in line with the Street estimates.
The company's earnings came in at $123.5 million, or $0.36 per share. This compares with $142.7 million, or $0.41 per share, last year.
Excluding items, Western Union Co reported adjusted earnings of $139.8 million or $0.41 per share for the period.
Analysts on average had expected the company to earn $0.41 per share. Analysts' estimates typically exclude special items.
The company's revenue for the period fell 6.2% to $983.6 million from $1.049 billion last year.
Western Union Co earnings at a glance (GAAP) :
-Earnings: $123.5 Mln. vs. $142.7 Mln. last year. -EPS: $0.36 vs. $0.41 last year. -Revenue: $983.6 Mln vs. $1.049 Bln last year.
-Guidance: Full year EPS guidance: $1.75 to $1.85 Full year revenue guidance: $4,115 to $4,215 Mln
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Western Union Co Q1 Profit Drops, Inline With Estimates

The WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) made its debut on 07/25/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $345.49 million, making it one of the average sized ETFs in the Style Box - Small Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree U.S. SmallCap Quality Dividend Growth Index.
The WisdomTree U.S. SmallCap Quality Dividend Growth Index is a fundamentally weighted index that consists of the small-capitalization segment of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.38% for DGRS, making it on par with most peer products in the space.
DGRS's 12-month trailing dividend yield is 2.76%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For DGRS, it has heaviest allocation in the Industrials sector --about 25.30% of the portfolio --while Financials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Patterson Companies Inc (PDCO) accounts for about 2.40% of the fund's total assets, followed by Western Union Co/the (WU) and Manpower Inc (MAN).
DGRS's top 10 holdings account for about 17.87% of its total assets under management.
Performance and Risk
So far this year, DGRS has lost about -16.78%, and is down about -6.42% in the last one year (as of 04/17/2025). During this past 52-week period, the fund has traded between $40.64 and $56.61.
DGRS has a beta of 1.04 and standard deviation of 21.27% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 219 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. SmallCap Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $28.40 billion in assets, Vanguard Dividend Appreciation ETF has $81.40 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports
ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
The Western Union Company (WU) : Free Stock Analysis Report
Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) a Strong ETF Right Now?

Looking at the universe of stocks we cover at Dividend Channel, in trading on Tuesday, shares of Western Union Co (Symbol: WU) were yielding above the 9% mark based on its quarterly dividend (annualized to $0.94), with the stock changing hands as low as $10.38 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 9% would appear considerably attractive if that yield is sustainable. Western Union Co (Symbol: WU) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Western Union Co, looking at the history chart for WU below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 9% annual yield.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks just recently went on sale »
Also see:
OHRP Price Target
RPAI Options Chain
Top Ten Hedge Funds Holding NSM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Western Union (WU) Passes Through 9% Yield Mark

Opinions will always differ, but our current economic environment seems rather uncertain to me, with tariffs, tariff wars, the threat of inflation, and a lot of investors with stock market jitters. So if you're looking to invest in stocks, I suggest taking a close look at dividend payers.
Why dividend-paying stocks? Well, because to some degree, they've been prequalified. Sure, growth stocks are exciting, but they can be more volatile than slower growers, and they can be significantly overvalued, too, and ripe for a pullback.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
But a company generally has to grow enough to become somewhat established with fairly dependable cash generation before its management will commit to paying a regular dividend. After all, no company wants to end up having to reduce or eliminate a dividend.
Here are four dividend payers to consider for your portfolio -- whether you have $1,000 to spend or $100,000.
1. Constellation Brands
Let's start with Constellation Brands (NYSE: STZ). One reason to consider it is that its stock appears undervalued at recent levels. Its recent forward-looking price-to-earnings (P/E) ratio of 12, for example, is well below the five-year average of 19. Its dividend, meanwhile, recently yielded 2.25%. That's not a huge dividend yield, but it's not nothing, either, and it's growing -- by an annual average of 6% over the past five years.
Constellation Brands is in the business of making and selling alcoholic beverages, primarily in the U.S., Mexico, New Zealand, and Italy. Its brands include Corona, Modelo, Robert Mondavi, High West, and Casa Noble.
Some are worried about the company's prospects due to tariffs and trade wars, but none other than Warren Buffett's company, Berkshire Hathaway, has been a buyer of the stock recently.
2. Western Union
Western Union (NYSE: WU) is a familiar name, facilitating fund transfers across more than 200 nations and working with more than 130 currencies. It's connected to billions of bank accounts and millions of digital wallets and payment cards.
Western Union may not be the first fintech stock you think about, but it's busy in that realm, and sports a fat dividend yield -- recently 8.7%. The dividend hasn't been growing briskly, but its current level is quite generous, and even if it were halved, it would still be higher than many payouts.
Western Union is not a slam-dunk buy, though, in part due to our uncertain economy. Much of its business involves helping immigrants in developed nations send money back to families in less developed nations. If many end up moving back home, the company could suffer.
So if you're drawn to this big dividend yield, consider buying, but plan to keep an eye on the company's developments. The company's forward P/E was recently 6, lower than its five-year average of 8.5.
3. The Campbell's Company
The Campbell's Company (NASDAQ: CPB) recently changed its name from Campbell Soup to reflect its broader range of offerings that includes brands such as Campbell's, Cape Cod, Chunky, Goldfish, Kettle Brand, Lance, Late July, Pace, Pacific Foods, Pepperidge Farm, Prego, Rao's, Snack Factory pretzel crisps, Snyder's of Hanover, Swanson, and V8. Indeed, the company has shifted much of its focus from soups to snacks.
Campbell's dividend recently yielded 4%, and that payout has been increased at an annual rate of 2% over the past five years. That's not a fast growth rate, but if you're starting at 4%, it's not so bad. The company's forward P/E was recently near 13, a bit lower than its five-year average of 15.5.
4. PepsiCo
PepsiCo (NASDAQ: PEP) is another stalwart company to consider. While many people think of it only as a beverage business, it's very much a snack business, too, with brands such as Lay's, Doritos, Cheetos, and Quaker alongside Pepsi-Cola, Gatorade, Mountain Dew, and SodaStream. PepsiCo has just announced a new acquisition of the prebiotic soda brand Poppi.
PepsiCo's stock recently sported a dividend yield of 3.6%, and its payout has been growing at an average annual rate of 7% over the past five years. Its forward P/E was recently 18, well below its five-year average near 23, suggesting a bargain price.
PepsiCo is a reasonably defensive business as well. If the economy falters, many may put off buying new cars or dishwashers, but they'll likely keep buying sodas and potato chips.
These are not the only dividend payers worth considering. You might also want to check out some dividend-oriented ETFs. You don't need much money to start investing in dividend payers -- $100 or 1,000 is plenty.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $305,226!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $41,382!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $517,876!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
Continue »
*Stock Advisor returns as of March 18, 2025
Selena Maranjian has positions in Berkshire Hathaway and Western Union. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Campbell's and Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.