Western Union, WU, has recently hit bottom lows reaching as far as the march 2009 lows. There’s no particular reason for this stock to have gone this far low. Of course, it had it’s rough patches but being part of the financial industry it was sold off as the other bank securities and other financial stocks were dropped off the radar. This particular stock continues to show growth, quarter over quarter and year over year.
Look at the quarters for the past three years:
Just look at the 10-year:
It continues to impress with better EPS and net income even as the stock market continued to rise the past 2009. So how do you trade this stock? It’s a short-term and long-term trade. Both are worth getting into now.
This is a global business. They trade money all around the world. You go to any country and you can bet they have a Western Union in that city or town. The name is well recognized. Just by looking at the financial results, it shows their business have thrived throughout the downturn. They will have competitors, but just like Coca-Cola, other companies cannot compete against the top branded business.
People love money. They love transferring money. People need money in depressionary and inflationary times.