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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 $196.16, marking a +1.36% move from the previous day. This change lagged the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.
Prior to today's trading, shares of the global payments processor had lost 5.14% over the past month. This has was narrower than the Business Services sector's loss of 6.16% and the S&P 500's loss of 6.94% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $1.73, up 16.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.03 billion, up 14.65% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $7.16 per share and revenue of $28.61 billion. These results would represent year-over-year changes of +21.15% and +18.7%, respectively.
Any recent changes to analyst estimates for Visa should also be noted by investors. 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, 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 has moved 0.13% higher. Visa is currently a Zacks Rank #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 27.04. Its industry sports an average Forward P/E of 13.8, so we one might conclude that Visa is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.64. 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 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 156, putting it in the bottom 39% 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 $196.16, marking a +1.36% move from the previous day. This change lagged the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.
Prior to today's trading, shares of the global payments processor had lost 5.14% over the past month. This has was narrower than the Business Services sector's loss of 6.16% and the S&P 500's loss of 6.94% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $1.73, up 16.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.03 billion, up 14.65% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $7.16 per share and revenue of $28.61 billion. These results would represent year-over-year changes of +21.15% and +18.7%, respectively.
Any recent changes to analyst estimates for Visa should also be noted by investors. 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, 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 has moved 0.13% higher. Visa is currently a Zacks Rank #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 27.04. Its industry sports an average Forward P/E of 13.8, so we one might conclude that Visa is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.64. 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 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 156, putting it in the bottom 39% 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.