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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 $218.66, marking a +1.95% move from the previous day. This change outpaced the S&P 500's 1.68% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Coming into today, shares of the global payments processor had lost 6.3% in the past month. In that same time, the Business Services sector lost 8.02%, while the S&P 500 lost 6.68%.
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 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Visa is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 25.45 right now. Its industry sports an average Forward P/E of 14.25, so we one might conclude that Visa is trading at a premium comparatively.
It is also worth noting that V currently has a PEG ratio of 1.68. 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. V's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow V in the coming trading sessions, be sure to utilize 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 $218.66, marking a +1.95% move from the previous day. This change outpaced the S&P 500's 1.68% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Coming into today, shares of the global payments processor had lost 6.3% in the past month. In that same time, the Business Services sector lost 8.02%, while the S&P 500 lost 6.68%.
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 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Visa is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 25.45 right now. Its industry sports an average Forward P/E of 14.25, so we one might conclude that Visa is trading at a premium comparatively.
It is also worth noting that V currently has a PEG ratio of 1.68. 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. V's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.