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Visa (V) Outpaces Stock Market Gains: What You Should Know
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Visa (V - Free Report) closed at $220.77 in the latest trading session, marking a +1.07% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the global payments processor had lost 0.38% over the past month, lagging the Business Services sector's gain of 0.74% and the S&P 500's gain of 3.76% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. In that report, analysts expect Visa to post earnings of $1.65 per share. This would mark year-over-year growth of 19.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.87 billion, up 19.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.12 per share and revenue of $28.72 billion, which would represent changes of +20.47% and +19.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Visa currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 30.68. For comparison, its industry has an average Forward P/E of 16.25, 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 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 1.15 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 184, putting it in the bottom 28% 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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Visa (V) Outpaces Stock Market Gains: What You Should Know
Visa (V - Free Report) closed at $220.77 in the latest trading session, marking a +1.07% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the global payments processor had lost 0.38% over the past month, lagging the Business Services sector's gain of 0.74% and the S&P 500's gain of 3.76% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. In that report, analysts expect Visa to post earnings of $1.65 per share. This would mark year-over-year growth of 19.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.87 billion, up 19.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.12 per share and revenue of $28.72 billion, which would represent changes of +20.47% and +19.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Visa currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 30.68. For comparison, its industry has an average Forward P/E of 16.25, 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 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 1.15 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 184, putting it in the bottom 28% 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.