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Visa (V) Gains As Market Dips: What You Should Know
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Visa (V - Free Report) closed at $222.46 in the latest trading session, marking a +0.47% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the global payments processor had gained 9.25% over the past month, outpacing the Business Services sector's loss of 8.62% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. On that day, Visa is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 19.01%. Meanwhile, our latest consensus estimate is calling for revenue of $6.77 billion, up 19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.02 per share and revenue of $28.19 billion. These totals would mark changes of +18.78% and +16.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.29% lower. Visa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 31.55. This valuation marks a premium compared to its industry's average Forward P/E of 18.
It is also worth noting that V currently has a PEG ratio of 1.95. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.11 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 124, putting it in the top 49% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Visa (V) Gains As Market Dips: What You Should Know
Visa (V - Free Report) closed at $222.46 in the latest trading session, marking a +0.47% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the global payments processor had gained 9.25% over the past month, outpacing the Business Services sector's loss of 8.62% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. On that day, Visa is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 19.01%. Meanwhile, our latest consensus estimate is calling for revenue of $6.77 billion, up 19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.02 per share and revenue of $28.19 billion. These totals would mark changes of +18.78% and +16.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.29% lower. Visa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 31.55. This valuation marks a premium compared to its industry's average Forward P/E of 18.
It is also worth noting that V currently has a PEG ratio of 1.95. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.11 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 124, putting it in the top 49% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.