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Visa (V) Outpaces Stock Market Gains: What You Should Know

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Visa (V - Free Report) closed at $245.99 in the latest trading session, marking a +1.5% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.12%.

Coming into today, shares of the global payments processor had gained 4.02% in the past month. In that same time, the Business Services sector lost 15.07%, while the S&P 500 gained 3%.

Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be July 27, 2021. The company is expected to report EPS of $1.32, up 24.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.82 billion, up 20.32% from the year-ago period.

V's full-year Zacks Consensus Estimates are calling for earnings of $5.60 per share and revenue of $23.5 billion. These results would represent year-over-year changes of +11.11% and +7.58%, respectively.

Investors should also note any recent changes to analyst estimates for V. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. V is currently a Zacks Rank #2 (Buy).

Looking at its valuation, V is holding a Forward P/E ratio of 43.26. This valuation marks a premium compared to its industry's average Forward P/E of 23.34.

We can also see that V currently has a PEG ratio of 2.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. V's industry had an average PEG ratio of 1.28 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 167, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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