10 Best All-Time Low Stocks To Buy Right Now

6. The Western Union Company (NYSE:WU)

Number of Hedge Fund Holders In Q3 2024: 27

The Western Union Company (NYSE:WU) is one of the oldest and biggest money transfer firms in the world. As of H1 2024, all of the firm’s revenue came from either money transfer or consumer services. Within these two businesses, money transfer accounted for the bulk of sales, as it generated 90% of The Western Union Company (NYSE:WU)’s revenue. The reliance on money transfer services means that the firm is dependent on economic health to a large extent for its well-being. Additionally, growing global scrutiny of money transfers also means that The Western Union Company (NYSE:WU) has to navigate a tightrope when it comes to regulations. While the US economy has maintained its strong growth trajectory, the fact that 62% of The Western Union Company (NYSE:WU)’s revenue is ex-North America means that the firm has to wait for the global economy to regain strength before it can generate tailwinds.

The Western Union Company (NYSE:WU)’s management commented on global trends during the Q3 2024 earnings call. Here is what they said:

“In the last several months, there have been a number of political events that have disrupted the typical migration flows in the region with recent elections in Panama, the Dominican Republic, Venezuela and Mexico. In some instances, residents may have delayed their migration to vote or stayed to see the outcome of an election in their home country. And in other instances, newly elected officials have attempted to stem migration. For example, in Panama, the new President has attempted to close the migration route from Colombia into Panama through the Darien Gap significantly reducing the number of migrants entering Panama. We believe these macro events have created a short-term impact on our Latin American business, which is roughly 10% of Consumer Money Transfer revenue.

However, as you can see from our broader results, we benefit from our globally diversified business and the portfolio effect it affords us. While Latin America slowed in the quarter, regions like Europe, the Middle East, ex-Iraq and APAC, which together account for 50% of CMT revenue all improved, with revenue growth rates in all three regions improving by 500 to 1,000 basis points relative to the second quarter. Operating in 200 countries and territories means there are frequently both positives and negatives within our portfolio. We believe the benefit of being a truly global at-scale player will enable us to manage these kinds of disruptions better than many of our smaller competitors. Now shifting to our digital business. As we discussed at our 2022 Investor Day, returning our digital business to double-digit revenue growth is a key priority for our organization and is essential to driving top line revenue growth for the overall company.”