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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 $226.17, moving +1.17% from the previous trading session. This change outpaced the S&P 500's 0.93% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.
Coming into today, shares of the global payments processor had lost 3.38% in the past month. In that same time, the Business Services sector gained 2.67%, while the S&P 500 gained 4.61%.
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 $2.10, up 6.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.05 billion, up 10.69% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.59 per share and revenue of $32.52 billion. These results would represent year-over-year changes of +14.53% and +10.96%, respectively.
It is also important to note the recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. 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, 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 0.05% higher. Visa is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 26.04. This valuation marks a premium compared to its industry's average Forward P/E of 14.11.
We can also see that V currently has a PEG ratio of 1.71. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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 $226.17, moving +1.17% from the previous trading session. This change outpaced the S&P 500's 0.93% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.
Coming into today, shares of the global payments processor had lost 3.38% in the past month. In that same time, the Business Services sector gained 2.67%, while the S&P 500 gained 4.61%.
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 $2.10, up 6.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.05 billion, up 10.69% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.59 per share and revenue of $32.52 billion. These results would represent year-over-year changes of +14.53% and +10.96%, respectively.
It is also important to note the recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. 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, 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 0.05% higher. Visa is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 26.04. This valuation marks a premium compared to its industry's average Forward P/E of 14.11.
We can also see that V currently has a PEG ratio of 1.71. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.