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Visa (V) Dips More Than Broader Markets: What You Should Know
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Visa (V - Free Report) closed at $217.04 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Heading into today, shares of the global payments processor had lost 1.61% over the past month, lagging the Business Services sector's gain of 1.48% and the S&P 500's gain of 2.67% in that time.
Visa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.65, up 19.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.87 billion, up 19.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.12 per share and revenue of $28.72 billion. These totals would mark changes of +20.47% and +19.13%, respectively, from last year.
Any recent changes to analyst estimates for Visa should also be noted by investors. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Visa is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 30.77. For comparison, its industry has an average Forward P/E of 16.88, which means Visa is trading at a premium to the group.
Also, we should mention that V has a PEG ratio of 1.85. 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 was holding an average PEG ratio of 1.15 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 216, which puts it in the bottom 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Visa (V) Dips More Than Broader Markets: What You Should Know
Visa (V - Free Report) closed at $217.04 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Heading into today, shares of the global payments processor had lost 1.61% over the past month, lagging the Business Services sector's gain of 1.48% and the S&P 500's gain of 2.67% in that time.
Visa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.65, up 19.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.87 billion, up 19.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.12 per share and revenue of $28.72 billion. These totals would mark changes of +20.47% and +19.13%, respectively, from last year.
Any recent changes to analyst estimates for Visa should also be noted by investors. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Visa is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 30.77. For comparison, its industry has an average Forward P/E of 16.88, which means Visa is trading at a premium to the group.
Also, we should mention that V has a PEG ratio of 1.85. 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 was holding an average PEG ratio of 1.15 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 216, which puts it in the bottom 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.