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
In the latest trading session, Visa (V - Free Report) closed at $226.47, marking a -1.07% move from the previous day. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.
Coming into today, shares of the global payments processor had lost 1.02% in the past month. In that same time, the Business Services sector gained 4.85%, while the S&P 500 gained 5.36%.
Visa will be looking to display strength as it nears its next earnings release. On that day, Visa is projected to report earnings of $2.10 per share, which would represent year-over-year growth of 6.06%. Meanwhile, our latest consensus estimate is calling for revenue of $8.05 billion, up 10.69% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.59 per share and revenue of $32.52 billion. These totals would mark changes of +14.53% and +10.96%, respectively, from last year.
Investors should also note any 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. 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 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 26.66. Its industry sports an average Forward P/E of 14.26, so we one might conclude that Visa is trading at a premium comparatively.
Investors should also note that V has a PEG ratio of 1.75 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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
In the latest trading session, Visa (V - Free Report) closed at $226.47, marking a -1.07% move from the previous day. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.
Coming into today, shares of the global payments processor had lost 1.02% in the past month. In that same time, the Business Services sector gained 4.85%, while the S&P 500 gained 5.36%.
Visa will be looking to display strength as it nears its next earnings release. On that day, Visa is projected to report earnings of $2.10 per share, which would represent year-over-year growth of 6.06%. Meanwhile, our latest consensus estimate is calling for revenue of $8.05 billion, up 10.69% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.59 per share and revenue of $32.52 billion. These totals would mark changes of +14.53% and +10.96%, respectively, from last year.
Investors should also note any 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. 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 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 26.66. Its industry sports an average Forward P/E of 14.26, so we one might conclude that Visa is trading at a premium comparatively.
Investors should also note that V has a PEG ratio of 1.75 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.