We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa (V) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Visa (V - Free Report) closed the most recent trading day at $223.17, moving -1.58% from the previous trading session. This move lagged the S&P 500's daily loss of 1.53%. At the same time, the Dow lost 1.72%, and the tech-heavy Nasdaq lost 3.27%.
Heading into today, shares of the global payments processor had lost 1.17% over the past month, outpacing the Business Services sector's loss of 1.63% and the S&P 500's loss of 1.28% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. In that report, analysts expect Visa to post earnings of $1.97 per share. This would mark year-over-year growth of 10.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.74 billion, up 7.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.43 per share and revenue of $32.24 billion. These totals would mark changes of +12.4% and +10%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa is currently a Zacks Rank #2 (Buy).
Digging into valuation, Visa currently has a Forward P/E ratio of 26.91. This represents a premium compared to its industry's average Forward P/E of 14.88.
Investors should also note that V has a PEG ratio of 1.78 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services was holding an average PEG ratio of 1.18 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa (V) Dips More Than Broader Markets: What You Should Know
Visa (V - Free Report) closed the most recent trading day at $223.17, moving -1.58% from the previous trading session. This move lagged the S&P 500's daily loss of 1.53%. At the same time, the Dow lost 1.72%, and the tech-heavy Nasdaq lost 3.27%.
Heading into today, shares of the global payments processor had lost 1.17% over the past month, outpacing the Business Services sector's loss of 1.63% and the S&P 500's loss of 1.28% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. In that report, analysts expect Visa to post earnings of $1.97 per share. This would mark year-over-year growth of 10.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.74 billion, up 7.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.43 per share and revenue of $32.24 billion. These totals would mark changes of +12.4% and +10%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa is currently a Zacks Rank #2 (Buy).
Digging into valuation, Visa currently has a Forward P/E ratio of 26.91. This represents a premium compared to its industry's average Forward P/E of 14.88.
Investors should also note that V has a PEG ratio of 1.78 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services was holding an average PEG ratio of 1.18 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.