Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, money transfer giant Western Union (NYS: WU) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Western Union and see what CAPS investors are saying about the stock right now.

Western Union facts

Headquarters (founded)

Englewood, Colo. (1851)

Market Cap

$7.5 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$5.7 billion

Management

CEO Hikmet Ersek (since 2010)
CFO Scott Scheirman (since 2006)

Return on Capital (average, past 3 years)

21.6%

Cash/Debt

$1.4 billion / $3.4 billion

Dividend Yield

4%

Competitors

American Express (NYS: AXP)
Moneygram International (NYS: MGI)
PayPal


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,582 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, yieldideas, tapped the stock as a particularly solid bargain opportunity:

Western Union is a cash flow machine and in addition to the recent lower guidance which took center stage, management announced another share repurchase program to total $750 [million] or 10% of market cap. Since 2006 it has bought back $4.6 [b]illion of its own shares. ... The money transfer business is just not going away and if [Western Union] as the largest player is facing additional costs, imagine the hardship the smaller competitors are dealing with and how their costs are affected.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Western Union may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article 5-Star Stocks That Just Got Smoked: Western Union originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Western Union. Motley Fool newsletter services recommend American Express and Western Union. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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