We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa (V) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Visa (V - Free Report) closed the most recent trading day at $235.95, moving +0.79% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%.
Prior to today's trading, shares of the global payments processor had gained 2.99% over the past month. This has lagged the Business Services sector's gain of 3.56% and outpaced the S&P 500's gain of 2.12% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release. In that report, analysts expect V to post earnings of $1.32 per share. This would mark year-over-year growth of 24.53%. Meanwhile, our latest consensus estimate is calling for revenue of $5.79 billion, up 19.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.59 per share and revenue of $23.43 billion, which would represent changes of +10.91% and +7.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. V is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that V has a Forward P/E ratio of 41.91 right now. Its industry sports an average Forward P/E of 22.58, so we one might conclude that V is trading at a premium comparatively.
We can also see that V currently has a PEG ratio of 2.24. 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. The Financial Transaction Services was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa (V) Outpaces Stock Market Gains: What You Should Know
Visa (V - Free Report) closed the most recent trading day at $235.95, moving +0.79% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%.
Prior to today's trading, shares of the global payments processor had gained 2.99% over the past month. This has lagged the Business Services sector's gain of 3.56% and outpaced the S&P 500's gain of 2.12% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release. In that report, analysts expect V to post earnings of $1.32 per share. This would mark year-over-year growth of 24.53%. Meanwhile, our latest consensus estimate is calling for revenue of $5.79 billion, up 19.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.59 per share and revenue of $23.43 billion, which would represent changes of +10.91% and +7.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. V is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that V has a Forward P/E ratio of 41.91 right now. Its industry sports an average Forward P/E of 22.58, so we one might conclude that V is trading at a premium comparatively.
We can also see that V currently has a PEG ratio of 2.24. 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. The Financial Transaction Services was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.