Western Union Company (NYSE: WU) provides a range of money transfer and bill payment services worldwide. Its consumer-to-consumer operations involve multi-currency and real-time processing systems for walk-in, online, and telephone money transfers. Its consumer-to-business operations enable payments to utilities, auto finance companies, mortgage servicers, financial service providers, and governmental agencies. The firm also offers money order products and advance payment services. Western Union does business through a network of more than 345,000 locations, in over 200 countries and territories.

Investors were pleased last week, when the company guided Y08 EPS to the higher end of the range $1.25-$1.29 and revenues to the higher end of the range $5.341-$5.439 billion. Analysts had been expecting $1.28 and $5.420 billion. Management also raised its long-term EPS growth objective from 12-14% to 15-18%, reaffirmed its long-term revenue growth objective of 10-12%, and announced that the board had authorized an additional $1 billion for share repurchases.

The WU price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with eight "strong buys", two "buys" and twelve "holds". Analysts expect a 16% growth rate, through the next year. The WU Price to Free Cash Flow ratio (18.49), Operating Margin (26.35%), Net Profit Margin (17.30%), Return on Assets (15.38%) and Return on Investment (17.91%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 88% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $17.96 and $26.15. A stop-loss of $21.80 looks good here. Note that the firm is next expected to report quarterly results in late July.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Best Buy Inc. (NYSE: BBY) beat Q1 estimates as consumers spent their government stimulus checks.
• Carnival Corp. (NYSE: CCL) posted better than-expected Q2 results but offered cautious Q3 guidance.
• Cyberonics Inc. (NASDAQ: CYBX) beat Q4 expectations and offered full-year guidance.
• FactSet Research Systems (NYSE: FDS) had better-than-expected Q3 results and 500 new subscribers.
• General Mills Inc. (NYSE: GIS) raised its full-year guidance, sending shares up near the 52-week high.
• Goldman Sachs Group Inc. (NYSE: GS) results beat the previous quarter and analysts' estimates.
• John Wiley & Sons Inc. (NYSE: JW.A) doubled its Q4 earnings due to an acquisition.
• Life Partners Holdings Inc. (NASDAQ: LPHI) lifted its Q1 outlook after "best quarter" in company history.
• Lindsay Corp. (NYSE: LNN) Q3 profits nearly doubled, but the share price plunged anyway.
• Meade Instruments Corp. (NASDAQ: MEAD) narrowed its full-year net loss due to restructuring.
• Pall Corp. (NYSE: PLL) beat Q1 expectations on sales growth that was broadly based across markets.
• Titan Machinery Inc. (NASDAQ: TITN) beat Q1 estimates on strong demand for agricultural equipment.
• Vermont Pure Holdings Ltd. (AMEX: VPS) posted strong Q2 results despite a bad debt write-off.
• Western Union Co. (NYSE: WU) said 2008 profits would beat estimates and announced share buyback.

More earnings highlights from this week: Morgan Stanley, FedEx, Ford, GE, Circuit City and others

Also, BusinessWeek likes the earnings prospects for agricultural stocks such as Archer Daniels Midland (NYSE: ADM), Monsanto (NYSE: MON), and Deere & Co. (NYSE: DE).

Upcoming results to watch for include Walgreen (NYSE: WAG), Kroger (NYSE: KR), Bed Bath & Beyond (NASDAQ: BBBY), General Mills (NYSE: GIS), Monsanto (NYSE: MON), Nike (NYSE: NKE), Oracle (NASDAQ: ORCL), Research in Motion (NASDAQ: RIMM), ConAgra (NYSE: CAG), Discover (NYSE: DFS), McCormick (NYSE: MKC), Rite Aid (NYSE: RAD:), and KB Home (NYSE: KBH).

Visit AOL Money & Finance for more earnings coverage.

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Freddie Mac (NYSE: FRE) is trading up about 7% on better-than-expected earnings.

Cardiome Pharma (NASDAQ: CRME) is up 9% on a good quarter.

Whole Foods (NASDAQ: WFMI) is selling off 9% on weak quarterly numbers.

Under Armour (NYSE: UA) is up 3% on news that S&P MidCap 400.

Douglas A. McIntyre is an editor at 247wallst.com.

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• AFLAC Inc. (NYSE: AFL) reported better-than-expected earnings for the first quarter.
• Ambac Financial Group Inc. (NYSE: ABK) posted a wider-than-expected loss; shares hit new low.
• Amdocs Ltd. (NYSE: DOX) beat Q2 estimates on strength in the managed services businesses.
• Amphenol Corp. (NYSE: APH) beat expectations in the first quarter and raised its guidance.
• Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) posted a larger-than-estimated Q1 loss.
• Aptar Group Inc. (NYSE: ATR) posted record Q1 results and raised its Q2 guidance.
• Bank of America (NYSE: BAC) Q1 earnings plunged on further housing-related write-downs.
• Brinker International Inc. (NYSE: EAT) narrowly beat earnings expectations on cost cutting.
• Bristol-Myers Squibb Co. (NYSE: BMY) beat analysts' estimates for the first quarter.
• Credit Suisse Group (NYSE: CS) reported a wider-than-forecast loss on subprime-related write-downs.
• Cree Inc. (NYSE: CREE) earnings slipped while revenues soared 29%.
• Eli Lilly & Co. (NYSE: LLY) reported worse-than-expected Q1 earnings on discontinued product charge.
• Gannet Inc. (NYSE: GCI) beat low expectations as earnings and revenue continue slump.
• Hasbro Inc. (NYSE: HAS) posted better-than-expected Q1 earnings on international strength.
• JAKKS Pacific Inc. (NASDAQ: JAKK) missed Q1 expectations on restructuring and litigation costs.
• Kimberly-Clark Corp. (NYSE: KMB) beat EPS estimates by a penny, as revenue jumped 10%.

• Lufkin Industries (NASDAQ: LUFK) beat analysts' expectations and raised its Q2 guidance.
• Manpower Inc. (NYSE: MAN) beat Q1 earnings expectations on strength in Europe.
• Mattel Inc. (NYSE: MAT) swung to a loss in Q1 on gross margin pressures.
• Merck & Co. (NYSE: MRK) Q1 profit nearly doubled on a one-time payment from a partner.
• Philip Morris International Inc. (NYSE: PM) posted solid results on new products and the weak dollar.
• Schering-Plough Corp. (NYSE: SGP) Q1 profit plunged but still beat analysts' expectations.
• UnitedHealth Inc. (NYSE: UNH) lowered its 2008 outlook after missing Q1 earnings estimates.
• Western Union Co. (NYSE: WU) posted strong results on exchange rates and strength overseas.

Also, Jim Cramer discusses "crummy lenders" and Joseph Lazzaro considers Citigroup Inc. (NYSE: C) as a barometer of the economy. One analyst thinks financials may have hit bottom and it may be time to buy, and Jon Ogg looks at what short sellers are making of tech stocks. Ted Allrich discusses what to sell/what to buy.

Upcoming results to watch for include Verizon Communications (NYSE: VZ), Tyson Foods (NYSE: TSN), CBS Corp. (NYSE: CBS), Countrywide Financial (NYSE: CFC), U.S. Steel Corp. (NYSE: X), Office Depot (NYSE: ODP), General Motors (NYSE: GM), Procter & Gamble (NYSE: PG), Kraft Foods (NYSE: KFT), Starbucks (NASDAQ: SBUX), Time Warner (NYSE: TWX), Comcast (NASDAQ: CMCSA), Exxon Mobil (NYSE: XOM), and Chevron (NYSE: CVX).

Visit AOL Money & Finance for more earnings coverage.

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Shares of the world's largest payment transfer company, Western Union Co. (NYSE: WU), have been rallying in today's trading after the company reported a strong quarterly profit, helped by favorable exchange rates that lifted international business. Strong growth came especially from India and China, but the domestic market too provided significant revenue growth on higher demand for electronic bill payment services.

For the quarter, Western Union said that its profit jumped 7% to $207 million, or 27 cents a share, helped by strong gains from its international business. These numbers are up from $193.2 million, or 25 cents a share, reported in the same period a year earlier. Included in the company's earnings figures was $24 million related to restructuring charges. Excluding that, Western Union's earnings would have come at 29 cents per share, exceeding analysts' forecasts for a quarterly profit of 28 cents a share.

Western Union posted a respectable growth of 12% year-over-year, climbing to $1.3 billion. During the period, Western Union benefited from the slumping dollar, a major driver for its international business. Analysts expected the company show revenue of $1.24 billion in the first-quarter, according to Thomson Financial.

Based on its good earnings, the global money transfer company lifted its 2008 earnings outlook and now expects a profit between $1.25 and $1.29 per share. For the full year, Western Union also predicted revenue growth in a range between 9% and 11%.

The company's positive outlook and its surprising earnings figures impressed investors' who showed their enthusiasm by pushing the stock over 4% higher in morning trading.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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Global Payments (NYSE: GPN) is a high-volume payments processor of electronic transactions and related money transfers. It performs point-of-sale credit card, debit card, and check authorization functions for merchants and financial institutions and offers corporate and government clients benefits transfer processing and electronic tax payment services. The firm also facilitates money transfers from the US and Europe, primarily targeting immigrants who send funds to their home countries. MasterCard (NYSE: MA) is a client. Western Union (NYSE: WU) is a competitor.

The firm had good news for investors late last month, when it announced fiscal Q3 EPS of 44 cents and revenues of $310.6 million. Wall Street has been expecting 42 cents and $300.9 million. In discussing the solid results, the CEO pointed to successful merchant services operations and strong revenue growth from an Asia-Pacific joint venture with HSBC Holdings (NYSE: HBC). Management also guided FY08 EPS to $1.95-$1.97 ($1.94 consensus) and FY08 revenues to $1.25-$1.26 billion ($1.24B consensus).

The news kept GPN shares cycling through a positive 15-week trading channel. The price is currently consolidating at the base of that channel, where oversold Stochastic and MACD technical parameters suggest the potential for a rise back toward the top. The approximate correspondence of the stock's 50-day moving average to the base of the channel backs the rebound notion.

Brokers recommend the issue with twelve "strong buys," four "buys", seven "holds" and one "underperform." Analysts see a 15% average annual growth rate, through the next five years. The GPN Price to Book ratio (3.03), Price to Free Cash Flow ratio (19.98), Sales Growth rate (19.29%), Operating Margin (19.49%), Net Profit Margin (13.69%), Return on Assets (13.34%) and Return on Investment (15.64%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $35.14 and $48.18. A stop-loss of $35.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Western Union used to transmit telegrams like: Dear George, my office authorized a transfer of up to fifty thousand dollars to the Bailey Building & Loan STOP Then the advent of the telephone substantially reduced telegram traffic STOP

Next came the Internet and e-mail, which not only reduced telegram traffic to a crawl, it also decreased hard-copy letter writing, as the U.S. Postal Service will confirm.

Since that time The Western Union Company (NYSE: WU) has focused on its consumer money transfer service, or moneygrams, and the results have been impressive. Analysts expect 11-14% revenue growth in FY 2008 on higher transaction fees and foreign exchange fees.

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The earnings crunch continues, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) posted its biggest quarterly loss since its creation in 2006.
• Archer Daniels Midland Co. (NYSE: ADM) missed earnings estimates despite revenue up 50%.
• Biogen Idec Inc. (NASDAQ: BIIB) fourth-quarter profit soared on strong sales of Avonex and Tysabri.
• Chevron Corp. (NYSE: CVX) reported record profits due to surging oil prices.
• CNET Networks Inc. (NASDAQ: CNET) revenue rose but the forecast was not encouraging.
• Data Domain Inc. (NASDAQ: DDUP) third-quarter revenues spiked due to aggressive overseas expansion.
• Elizabeth Arden Inc. (NASDAQ: RDEN) benefitted from overseas growth, which offset weak holiday sales.
• GlaxoSmithKline (NYSE: GSK) warned that 2008 earnings would be affected by competition from generics.
• Harris Corp. (NYSE: HRS) beat estimates and raised its guidance.
• Micros Systems (NASDAQ: MCRS) beat expectations and offered guidance in line with estimates.
• News Corp. (NYSE: NWS) fell short of earnings expectations despite strength in MySpace and Fox News.
• PepsiCo Inc. (NYSE: PEP) results met estimates and it announced further share buybacks.
• Polo Ralph Lauren Corp. (NYSE: RL) beat estimates and raised its guidance.
• SiRF Technology Holdings Inc. (NASDAQ: SIRF) missed expectations due to a seasonal decline.
• Toll Brothers Inc. (NYSE: TOL) expects to report its seventh straight quarterly revenue decline.
• Toyota Motor Corp. (NYSE: TM) attributed solid earnings to growth in China, Russia, emerging markets.
• Wendy's International Inc. (NYSE: WEN) missed earnings estimates, despite beating revenue forecast.
• Western Union Co. (NYSE: WU) posted results just ahead of Wall Street estimates.
• Yum! Brands (NYSE: YUM) posted solid results on overseas growth and share buybacks.

For more BloggingStocks earnings highlights from this past week, see Earnings highlights: Time Warner, Cisco, Gannett, Disney, EDS and others.

Also, Doug McIntyre suspects analysts are expecting too much from earnings in the later half of the year. And Zac Bissonette is skeptical about claims of "record earnings."

Upcoming results to watch for include General Motors Corp. (NYSE: GM), Applied Materials Inc. (NASDAQ: AMAT), Coca-Cola Co. (NYSE: KO), Deere & Co. (NYSE: DE), and Comcast Corp. (NASDAQ: CMCSA).

Visit AOL Money & Finance for more earnings coverage.

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Do you know which company introduced the first consumer charge card? No? It also introduced the first successful stock ticker and was one of the original eleven stocks in the Dow Jones Average. Still no? What if I say that it completed the first transcontinental telegraph line across North America? Now you have it! Of course, the telegram is a memory.

Western Union Company (NYSE: WU) provides a range of money transfer and bill payment services worldwide. Its consumer-to-consumer operations involve multi-currency and real-time processing systems for walk-in, online, and telephone money transfers. Its consumer-to-business operations enable payments to utilities, auto finance companies, mortgage servicers, financial service providers, and governmental agencies. The firm also offers money order products and advance payment services. Western Union does business through a network of more than 320,000 locations, in over 200 countries and territories.

Investors were pleased last week, when the company reported Q3 EPS of 30 cents and revenues of $1.26 billion. The Street had been looking for 28 cents and $1.26 billion. D.A. Davidson subsequently upgraded the shares to "buy," noting improved business in Mexico and optimism over newer relationships with Wal-Mart Stores Inc. (NYSE: WMT) and Google Inc. (NASDAQ: GOOG). Management also guided FY07 EPS to $1.11-$1.13, versus consensus of $1.08. The share price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers recommend the issue with six "strong buys," five "buys," eleven "holds" and one "sell." Analysts expect a 14% growth rate, through the next year. The WU P/E ratio (20.42), Price to Free Cash Flow ratio (14.60), Operating Margin (27.13%), Net Profit Margin (17.45%), Return on Assets (15.50%), Return on Investment (23.26%) and Net Income per Employee ($140.88k) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 83% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $17.96 and $24.14. A stop-loss of $18.70 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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If you use a credit card, the chances are pretty fair that you have done some business with an Atlanta outfit that facilitates electronic transactions around the world.

Global Payments (NYSE: GPN) is a high-volume payments processor of electronic transactions and related money transfers. It performs point-of-sale credit card, debit card and check authorization functions for merchants and financial institutions and offers corporate and government clients benefit transfer processing and electronic tax payment services. The firm also facilitates money transfers from the US and Europe, primarily targeting immigrants who send funds to their home countries. MasterCard (NYSE: MA) is a client. Western Union (NYSE: WU) is a competitor.

The firm had good news for investors last week, when it announced fiscal Q1 EPS of 54 cents and revenues of $311 million. Wall Street has been expecting 50 cents and $294.6 million. The company attributed the successful quarter to a solid increase in merchant service revenues, continued organic expansion and favorable results from an Asia-Pacific joint venture with HSBC. Management also guided FY08 EPS to $1.87-1.96 ($1.91 consensus) and FY08 revenues to $1.20-$1.25 billion ($1.19B consensus). Barrington Research subsequently reiterated its "outperform" on the shares.

Altogether, brokers recommend the issue with twelve "strong buys," four "buys" and seven "holds." The GPN Price to Book ratio (3.83), Price to Free Cash Flow ratio (22.01), Sales Growth rate (50.75%), Operating Margin (19.85%), Net Profit Margin (13.04%), Return on Assets (12.97%) and Return on Investment (15.02%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $30 and $49.13. A stop-loss of $38.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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While media pundits and politicians debate the pros and cons of immigration, one thing is clear -- the number of immigrants both in the U.S. and worldwide is growing rapidly. And, according to Nathan Slaughter, these workers are using money transfers to send funds back to their home countries.

In his Half-Priced Stocks newsletter, the advisor turns to Western Union (NYSE: WU) as a beneficiary of this trend. He considers the company a "venerable blue chip" that is significantly undervalued.

Slaughter notes, "With more than 300,000 agent locations worldwide, Western Union is clearly the dominant player in the money-transfer industry -- it boasts a network three times as large as its closest rival."

Meanwhile, Slaughter points out that the firm recently announced that it had joined with financial services firm Checksmart to offer its services in 263 locations. This new partnership, he points out, follows a flurry of recent deals that have seen Western Union pick up more than 1,400 locations in Mexico, Italy, and Spain.

The advisor says, "And because costs associated with adding new stores to the network are modest, the additional revenues generated by these contracts should fall nicely to the bottom line."

Last quarter alone, he notes, the firm processed more than 138 million transactions, an impressive 46% year-over-year increase that pushed revenues well past the $1 billion mark. And going forward, he says, "We expect both of those totals to continue climbing at a healthy pace."

As to the impact of immigration, he suggests, "The population of immigrants continues to swell worldwide, meaning tens of millions of workers will be sending money back home to their families on a regular basis."

He concludes, "With a commanding lead in this demographic-driven business, we think Western Union is worth $32 per share -- about 55% above where the stock is currently trading. As such, this venerable blue-chip firm has one of the market's most attractive risk-to-reward profiles."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

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Markets lost ground today closing about 1% lower as oil prices eased on higher investory numbers and higher bond yields. Darden Restaurants (NYSE: DRI) fell $3.41 (-7%) to $43.44 after reporting a fourth quarter loss.

Western Union (NYSE: WU) fell $1.24 (-6%) to $21.21. Home Depot (NYSE: HD) rose $1.76 (5%) to $40.03 on a sale of its supply business. Exxon Mobil Corporation (NYSE: XOM) fell $3.02 (-4%) to $82.82 as oil prices fell.

The NYSE had volume of 3.2 billion shares with 719 shares advancing while 2,565 declined for a loss of 121.44 points to close at 9,905.08. On the NASDAQ, 2 billion shares traded, 851 advanced and 2,186 declined for a loss of 26.8 to 2,599.96.

General Electric (NYSE: GE) saw heavy volume on the July 35 calls (GEGG) with over 95,000 options trading while the December 40 strike moved (GELH) with over 33,000 calls. General Motors (NYSE: GM) saw heavy volume on the September 35 calls (GMIG) with over 27,000 options trading. Kraft Foods (NYSE: KFT) saw volume on the July 37.50 calls (KFTGU) with over 24,000 options trading. Home Depot (NYSE: HD) saw heavy volume on the August 40 calls (HDHH) with over 22,000 options trading. In options there were 4.9 million puts and 5.4 million calls traded for a put/call open interest ratio of 0.91

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

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Venerable money transfer firm Western Union Company (NYSE: WU) posted positive earnings overall on April 24, despite a 6% decline in volume for domestic transactions due primarily to the slowdown in the construction industry. Fewer jobs for Hispanics, who form the majority of construction workers, means fewer wire transfers of fewer dollars back home. Also, tighter documentation requirements for wiring money, coupled with increased immigration law enforcement caused a softening of domestic earnings by $20-$30 million. In order to counteract these effects, Western Union has reduced some fees for utilizing its online distribution network, www.westernunion.com.

Despite this, Western Union still posted solid revenue growth numbers. Revenue was up 8% to $1.1 billion. Diluted EPS was $0.25. First quarter 2007 operating income was $305 million. Net income was $193 million. During the quarter, Western Union was hit by higher than anticipated restructuring and integration costs as a result of spinning off its First Data subsidiary.

International consumer-to-consumer transactions now account for 60% of Western Union's total revenue. Within the international market, revenues from Chinese transactions are up 15% on transaction growth of 21%. India registered a 95% transaction growth rate from 1Q 2006. Western Union CEO Christina Gold believes Western Union has just scratched the surface of demand for wire transfers within India. In order to meet increasing international consumer-to-consumer demand, Western Union has signed more than 305,000 agent locations including supermarkets, newspaper kiosks and foreign banking networks worldwide.

In 1Q 2007, Western Union spent $113 million to buy back 5.2 million of its shares, with plans to spend an additional $867 million through 2008. Despite a tough domestic market, Western Union management forecasts FY 2007 to be $1.07-$1.11 on revenue growth of 10-11%. Western Union stock opened the year at $22.71, and closed recently at $22.16, having gone essentially nowhere. If you have the stock in your portfolio, I would hold on and wait for better times. If not, I wouldn't go out and buy it until we see how the US housing market will behave.

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MOST NOTEWORTHY:

• JP Morgan upgraded EMC Corp (NYSE: EMC) to Overweight from Neutral as the firm believes improved momentum in the second-half of 2007 will drive shares higher.

• Network Appliance (NASDAQ: NTAP) was also upgraded by JP Morgan, to Overweight from Neutral, as the firm believes storage will experience improving secular trends this year.

• Citigroup upgraded ImClone (NASDAQ: IMCL) to Hold from Sell and raised their target to $40 from $26 due to lower competitive threats from Amgen Inc's (AMGN) Vectibix.

• Prudential raised International Game Technology's (NYSE: IGT) rating to Neutral from Underweight, citing valuation.

• Goldman Sachs upgraded DreamWorks Animation SKG, Inc (NYSE: : DWA) to Buy from Neutral with a $36 target and added DWA to their Americas Investment Buy List. Goldman believes the company's new films should drive a higher valuation.

• Wachovia upgraded Urban Outfitters, Inc (NASDAQ: URBN) to Outperform from Market Perform after a meeting with management as they believe a turnaround is well in progress.

• Wachovia upgraded Northrop Grumman Corp (NYSE: NOC) to Market Perform from Underperform on valuation.

• AG Edwards upgraded Western Union Co (NYSE: WU) to Buy from Hold with a $36 target.

• Friedman, Billings, Ramsey upgraded shares of Progressive Corp (NYSE: PGR) to Market Perform from Underperform on valuation.

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Western Union is one of those few companies that benefits from both institutional (i.e., commercial) and individual customers.

In addition, a huge part of Western Union's business comes from immigrants who need to wire money home to their families. Many of these individual customers are from Latin America and other emerging countries -- each time someone sends money home, Western Union gets a piece of the action. Its fees are sizable and, ultimately, are reflected in a $21.00 stock price that will easily hit $30.00 by the end of 2007.

Revenues have been impressive and climbing steadily over the past few years, including 13% for the first nine months of 2006. Profits have also been extremely high with operating margins often above 30%. The company is run by CEO Christina Gold, a former high-level Avon executive who was in charge of Western Union before the spin-off. (She should have been made the CEO of Avon, but that's another story.) Whenever I question corporate types on their vote for the best female executive, Ms. Gold is consistently mentioned as the leading choice.

There are some things that WU needs to worry about. Regulatory costs have risen as the government has cracked down on money laundering and terrorist financing, and if immigration is curtailed or the economy goes negative, the company is likely to lose customers. Overhead costs are now higher than when the company was part of a larger parent. However, the company recently won a lawsuit against the state of Arizona, which was attempting to claim a portion of the monies being sent over the border by immigrants. WU's size will lessen the impact of the regulatory costs, its huge cash flows will help make the debt less burdensome, and its profits are big enough to take a bit of a blow. And immigration doesn't seem likely to wane anytime soon, especially with the Democrats in power.

Western Union is due to announce its fourth-quarter earnings at the end of January and the market will be watching this company very closely. If results are strong, this stock should jump quickly.

Type of stock: A trusted, global brand name company that generates huge cash flows and profits.

Price target: The stock has been trading on its own for a few months now, and it has already climbed from just under $17 to almost $22. I think it's going to be one of 2007's big winners. Buy now and you will see this stock hit $30 by year's end.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

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Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Western Union (NYSE:WU ) is the favorite speculative idea for 2007 from Paul Tracy. The editor of StreetAuthority Market Advisor notes, "The company, which dates back to the early 1850s, has one of the most recognized names around the world. Today, Western Union is a financial powerhouse, generating some $4 billion in annual revenues.

"As the world's leading money transfer specialist, the firm operates a vast global network of 270,000 agent locations spread throughout nearly 200 countries. With more than a quarter of a million locations, Western Union's network dwarfs its closest rivals by a wide margin.

"In the digital age where the Internet is an increasingly popular transaction medium and ATMs are conveniently located at seemingly every major intersection, Western Union's core money transfer services may seem to be a bit dated. However, it is easy to forget that not everyone has a bank account or online access -- particularly in developing countries.

"With many workers moving to developed countries in search of higher wages, global immigration has been steadily expanding. Much of this growth is forecast to occur in nations such as China, India, and Mexico, where Western Union has an entrenched position.

"Even before Western Union was spun off from former parent First Data via a tax-free distribution, Wall Street had been ratcheting Western Union's short-term earnings forecasts lower.

"The tempered expectations were primarily due to the uncertain impact of U.S. immigration reform and the fact that remittances to Mexico have trailed off in recent quarters. However, as is often the case, these fears are overblown, particularly considering 80% of Western Union's agents are located outside of the U.S."

To see Paul's favorite speculative stock for 2007, click here.

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