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Visa (V) Gains But Lags Market: What You Should Know
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Visa (V - Free Report) closed at $212.31 in the latest trading session, marking a +1.11% move from the prior day. This change lagged the S&P 500's 1.64% gain on the day. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the global payments processor had lost 2.42% over the past month. This has was narrower than the Business Services sector's loss of 7.08% and lagged the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $1.70, up 19.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.79 billion, up 19.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.04 per share and revenue of $28.24 billion. These totals would mark changes of +19.12% and +17.14%, respectively, from last year.
Any recent changes to analyst estimates for Visa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 29.81. This valuation marks a premium compared to its industry's average Forward P/E of 25.14.
Investors should also note that V has a PEG ratio of 1.84 right now. 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 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 183, which puts it in the bottom 28% 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) Gains But Lags Market: What You Should Know
Visa (V - Free Report) closed at $212.31 in the latest trading session, marking a +1.11% move from the prior day. This change lagged the S&P 500's 1.64% gain on the day. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the global payments processor had lost 2.42% over the past month. This has was narrower than the Business Services sector's loss of 7.08% and lagged the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $1.70, up 19.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.79 billion, up 19.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.04 per share and revenue of $28.24 billion. These totals would mark changes of +19.12% and +17.14%, respectively, from last year.
Any recent changes to analyst estimates for Visa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 29.81. This valuation marks a premium compared to its industry's average Forward P/E of 25.14.
Investors should also note that V has a PEG ratio of 1.84 right now. 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 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 183, which puts it in the bottom 28% 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.