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Visa (V) Dips More Than Broader Markets: What You Should Know
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Visa (V - Free Report) closed the most recent trading day at $245.34, moving -1.12% from the previous trading session. This change lagged the S&P 500's 0.42% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the global payments processor had gained 2.73% over the past month, outpacing the Business Services sector's gain of 1.77% and the S&P 500's gain of 1.02% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $2.23, up 15.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, up 9.82% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.65 per share and revenue of $32.6 billion. These results would represent year-over-year changes of +15.33% and +11.21%, respectively.
Any recent changes to analyst estimates for Visa should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Visa currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 28.67. This valuation marks a premium compared to its industry's average Forward P/E of 14.2.
Investors should also note that V has a PEG ratio of 1.86 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 1.26 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Visa (V) Dips More Than Broader Markets: What You Should Know
Visa (V - Free Report) closed the most recent trading day at $245.34, moving -1.12% from the previous trading session. This change lagged the S&P 500's 0.42% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the global payments processor had gained 2.73% over the past month, outpacing the Business Services sector's gain of 1.77% and the S&P 500's gain of 1.02% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $2.23, up 15.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, up 9.82% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.65 per share and revenue of $32.6 billion. These results would represent year-over-year changes of +15.33% and +11.21%, respectively.
Any recent changes to analyst estimates for Visa should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Visa currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 28.67. This valuation marks a premium compared to its industry's average Forward P/E of 14.2.
Investors should also note that V has a PEG ratio of 1.86 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 1.26 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.