Trade-Ideas LLC identified

Western Union

(

WU

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Western Union as such a stock due to the following factors:

  • WU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $125.2 million.
  • WU is up 4.6% today from today's close.

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More details on WU:

The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions. The Consumer-to-Consumer segment offers cash money transfer services involving walk-in agent locations. The stock currently has a dividend yield of 3.6%. WU has a PE ratio of 11. Currently there are 3 analysts that rate Western Union a buy, 5 analysts rate it a sell, and 12 rate it a hold.

The average volume for Western Union has been 5.0 million shares per day over the past 30 days. Western Union has a market cap of $9.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.08 and a short float of 15.2% with 9.66 days to cover. Shares are up 1.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Western Union as a

buy

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • WESTERN UNION CO reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WESTERN UNION CO increased its bottom line by earning $1.62 versus $1.59 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $1.62).
  • Despite the weak revenue results, WU has outperformed against the industry average of 18.0%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • 46.23% is the gross profit margin for WESTERN UNION CO which we consider to be strong. Regardless of WU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.38% trails the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the IT Services industry and the overall market, WESTERN UNION CO's return on equity significantly exceeds that of both the industry average and the S&P 500.

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