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Visa (V) Outpaces Stock Market Gains: What You Should Know
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Visa (V - Free Report) closed the most recent trading day at $221.95, moving +1.74% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.3%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Coming into today, shares of the global payments processor had lost 2.42% in the past month. In that same time, the Business Services sector lost 5.71%, while the S&P 500 lost 2.95%.
Visa will be looking to display strength as it nears 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.
It is also important to note the recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Visa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 25.89. This valuation marks a premium compared to its industry's average Forward P/E of 14.06.
Investors should also note that V has a PEG ratio of 1.71 right now. 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. V's industry had an average PEG ratio of 1.11 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 55, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Visa (V) Outpaces Stock Market Gains: What You Should Know
Visa (V - Free Report) closed the most recent trading day at $221.95, moving +1.74% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.3%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Coming into today, shares of the global payments processor had lost 2.42% in the past month. In that same time, the Business Services sector lost 5.71%, while the S&P 500 lost 2.95%.
Visa will be looking to display strength as it nears 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.
It is also important to note the recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Visa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 25.89. This valuation marks a premium compared to its industry's average Forward P/E of 14.06.
Investors should also note that V has a PEG ratio of 1.71 right now. 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. V's industry had an average PEG ratio of 1.11 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 55, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.