The new Wal-Mart money-transfer system will let customers transfer money between more than 4,000 retail locations nationwide through a partnership with Euronet Worldwide (EEFT) subsidiary Ria. The retailer said its service will cost "up to 50% less than similar offerings on the market."
News of the service causer Western Union and competitor MoneyGram (MGI) stocks to fall due to the impending competition from the retailer.
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TheStreet Ratings team rates WESTERN UNION CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WESTERN UNION CO (WU) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: