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Visa (V) Gains But Lags Market: What You Should Know
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In the latest trading session, Visa (V - Free Report) closed at $215.70, marking a +1.19% move from the previous day. The stock lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the global payments processor had lost 1.78% over the past month. This has was narrower than the Business Services sector's loss of 4.2% and lagged the S&P 500's loss of 1.42% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. This is expected to be April 26, 2022. The company is expected to report EPS of $1.65, up 19.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.86 billion, up 19.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.06 per share and revenue of $28.57 billion, which would represent changes of +19.46% and +18.53%, respectively, from the prior year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. Visa is currently a Zacks Rank #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 30.19. For comparison, its industry has an average Forward P/E of 16.55, which means Visa is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.82 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. The Financial Transaction Services was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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
In the latest trading session, Visa (V - Free Report) closed at $215.70, marking a +1.19% move from the previous day. The stock lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the global payments processor had lost 1.78% over the past month. This has was narrower than the Business Services sector's loss of 4.2% and lagged the S&P 500's loss of 1.42% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. This is expected to be April 26, 2022. The company is expected to report EPS of $1.65, up 19.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.86 billion, up 19.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.06 per share and revenue of $28.57 billion, which would represent changes of +19.46% and +18.53%, respectively, from the prior year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. Visa is currently a Zacks Rank #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 30.19. For comparison, its industry has an average Forward P/E of 16.55, which means Visa is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.82 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. The Financial Transaction Services was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.