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Visa (V) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Visa (V - Free Report) closed at $227.49, marking a -0.7% move from the previous day. This change lagged the S&P 500's daily loss of 0.46%.

Coming into today, shares of the global payments processor had lost 2.54% in the past month. In that same time, the Business Services sector gained 0.13%, while the S&P 500 gained 1.93%.

Wall Street will be looking for positivity from V as it approaches its next earnings report date. In that report, analysts expect V to post earnings of $1.53 per share. This would mark year-over-year growth of 36.61%. Meanwhile, our latest consensus estimate is calling for revenue of $6.45 billion, up 26.42% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.82 per share and revenue of $23.96 billion. These totals would mark changes of +15.48% and +9.7%, respectively, from last year.

Any recent changes to analyst estimates for V should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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

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 0.74% higher. V is currently a Zacks Rank #3 (Hold).

Looking at its valuation, V is holding a Forward P/E ratio of 39.36. For comparison, its industry has an average Forward P/E of 22.11, which means V is trading at a premium to the group.

Also, we should mention that V has a PEG ratio of 2.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. V's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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