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Visa (V) Gains But Lags Market: What You Should Know
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Visa (V - Free Report) closed at $227.74 in the latest trading session, marking a +0.61% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.37%.
Coming into today, shares of the global payments processor had gained 13.02% in the past month. In that same time, the Business Services sector gained 6.17%, while the S&P 500 gained 5.64%.
Visa will be looking to display strength as it nears its next earnings release. 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 $6.88 billion, up 20.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.13 per share and revenue of $28.76 billion. These totals would mark changes of +20.64% and +19.31%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 31.76. This represents a premium compared to its industry's average Forward P/E of 18.7.
Meanwhile, V's PEG ratio is currently 1.91. 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 1.18 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 161, putting it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Visa (V) Gains But Lags Market: What You Should Know
Visa (V - Free Report) closed at $227.74 in the latest trading session, marking a +0.61% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.37%.
Coming into today, shares of the global payments processor had gained 13.02% in the past month. In that same time, the Business Services sector gained 6.17%, while the S&P 500 gained 5.64%.
Visa will be looking to display strength as it nears its next earnings release. 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 $6.88 billion, up 20.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.13 per share and revenue of $28.76 billion. These totals would mark changes of +20.64% and +19.31%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 31.76. This represents a premium compared to its industry's average Forward P/E of 18.7.
Meanwhile, V's PEG ratio is currently 1.91. 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 1.18 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 161, putting it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.