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Visa (V) Stock Sinks As Market Gains: What You Should Know
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Visa (V - Free Report) closed at $205.30 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, lost 0.29%.
Heading into today, shares of the global payments processor had lost 1.83% over the past month, lagging the Business Services sector's gain of 4.23% and the S&P 500's gain of 3.8% in that time.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. On that day, V is projected to report earnings of $1.27 per share, which would represent a year-over-year decline of 13.01%. Our most recent consensus estimate is calling for quarterly revenue of $5.51 billion, down 8.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.44 per share and revenue of $23.25 billion. These totals would mark changes of +7.94% and +6.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% lower. V is currently a Zacks Rank #4 (Sell).
Digging into valuation, V currently has a Forward P/E ratio of 37.82. This valuation marks a premium compared to its industry's average Forward P/E of 24.99.
Also, we should mention that V has a PEG ratio of 3.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. V's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Visa (V) Stock Sinks As Market Gains: What You Should Know
Visa (V - Free Report) closed at $205.30 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, lost 0.29%.
Heading into today, shares of the global payments processor had lost 1.83% over the past month, lagging the Business Services sector's gain of 4.23% and the S&P 500's gain of 3.8% in that time.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. On that day, V is projected to report earnings of $1.27 per share, which would represent a year-over-year decline of 13.01%. Our most recent consensus estimate is calling for quarterly revenue of $5.51 billion, down 8.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.44 per share and revenue of $23.25 billion. These totals would mark changes of +7.94% and +6.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% lower. V is currently a Zacks Rank #4 (Sell).
Digging into valuation, V currently has a Forward P/E ratio of 37.82. This valuation marks a premium compared to its industry's average Forward P/E of 24.99.
Also, we should mention that V has a PEG ratio of 3.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. V's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.