WU - Western Union: Visa AI And Looks Like A Buy
2024-03-26 11:17:33 ET
Summary
- Western Union has reported a new agreement with a large credit card company, which could drive significant stock demand.
- The company operates in the money and parcel remittance industry, offering services internationally.
- Western Union's strategy is focused on digitalization, with efforts to enhance customer experiences and leverage artificial intelligence.
The Western Union Company ( WU ) recently reported a new agreement with a large credit card company to send money to card holders. With this relevant net income driver, I think that recent stock repurchases or the use of artificial intelligence to enhance customer experiences could bring significant stock demand. The 5 year dividend growth rate of 4.07% may also bring the interest of new investors. There are obvious risks coming from geopolitical tensions, goodwill impairments, or regulatory changes. However, I do believe that the company appears quite cheap at close to 9x Non-GAAP TTM earnings.
Western Union
Western Union is a recognized money and parcel remittance company providing services in accordance with international standards. Digital financing instances have been added to its services in recent years based on market trends in general. By the end of 2023, the company reached 400,000 active agencies across 200 countries, serving clients ranging from individual consumers to large companies that use Western Union to facilitate monetary transactions and cross-border shipments of products....
Western Union: Visa, AI, And Looks Like A Buy