+++ 𝟏𝟐𝐭𝐡 𝐚𝐝𝐝𝐢𝐭𝐢𝐨𝐧 𝐭𝐨 𝐭𝐡𝐞 𝐩𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 - 𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐔𝐧𝐢𝐨𝐧 +++
Dear fellow investors,
Today, I included Western Union in our portfolio. I have been tracking the company for some time and occasionally hold positions in my personal account. In my view, the decline following yesterday's earnings release presents a good opportunity to initiate a first position.
🖊 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐏𝐨𝐫𝐭𝐫𝐚𝐢𝐭:
Western Union is a global leader in cross-border, cross-currency money movement and payments. The company provides individuals and businesses with fast, reliable, and convenient ways to send and receive money, as well as to make payments and access services through digital, mobile, and retail channels. With a vast network spanning over 200 countries and territories, Western Union operates through more than 550,000 agent locations worldwide.
▶ Market-Cap: ~ $4.34 billion
▶ Book-Value: ~ $1.40
▶ P/E-Ratio: ~7.4
▶ Dividend-Yield: ~7.8%
🔎 𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐔𝐧𝐢𝐨𝐧: 𝐖𝐡𝐲 𝐝𝐨 𝐈 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐢𝐭 𝐢𝐬 𝐚𝐭𝐭𝐫𝐚𝐜𝐭𝐢𝐯𝐞𝐥𝐲 𝐯𝐚𝐥𝐮𝐞𝐝...
Western Union possesses a robust high margin business model that is likely to persist into the future. Indeed, the rise of digitalization, the advent of fintech competitors, and the emergence of cryptocurrencies have presented challenges. As a result, Western Union has seen a decline in revenues and profits and is actively seeking to reinvent itself to counter these trends.
The recent investments in digital solutions are beginning to yield results. Western Union has reported adjusted revenue growth in the Q2 results, marking the first instance since 2021. However, there is still a considerable journey ahead to achieve sustainable growth by 2025. The management remains optimistic about reaching this target.
The market seems yet not to be convinced, which explains the discount Western Union is traded but if Western Union continues to deliver we quickly see different prices.
Overall, the stock is currently caught in a trading range between $11 - $14. I do not plan to hold through the entire turnaround but rather look for a gain of 10 - 15%.
📉 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐒𝐭𝐨𝐜𝐤:
Current stock price: $11.63
YTD-Performance: +0.5 %
1-year Performance: -2 %
3-year Performance: - 48 %
www.ariva.de/news/western-union-reports-second-quarter-2024-results-11324231$WU (Western Union Company)$GER40$NSDQ100$DJ30
Best,
Part_Time_Joe
PS: I also purchased a first position for my private trading account today... Show More
