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Visa (V) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Visa (V - Free Report) closed at $205.36, marking a +0.26% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the global payments processor had lost 0.73% over the past month, outpacing the Business Services sector's loss of 3.62% and the S&P 500's loss of 3.6% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. The company is expected to report EPS of $2, up 10.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.66 billion, up 8.47% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.29 per share and revenue of $31.81 billion. These results would represent year-over-year changes of +10.53% and +8.54%, respectively.
Investors might also notice recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. Visa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 24.7. For comparison, its industry has an average Forward P/E of 14.25, which means Visa is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.65. 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 0.85 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 171, putting it in the bottom 33% 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Visa (V - Free Report) closed at $205.36, marking a +0.26% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the global payments processor had lost 0.73% over the past month, outpacing the Business Services sector's loss of 3.62% and the S&P 500's loss of 3.6% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. The company is expected to report EPS of $2, up 10.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.66 billion, up 8.47% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.29 per share and revenue of $31.81 billion. These results would represent year-over-year changes of +10.53% and +8.54%, respectively.
Investors might also notice recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. Visa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 24.7. For comparison, its industry has an average Forward P/E of 14.25, which means Visa is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.65. 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 0.85 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 171, putting it in the bottom 33% 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.