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Visa (V) Stock Sinks As Market Gains: What You Should Know
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Visa (V - Free Report) closed at $247.22 in the latest trading session, marking a -0.03% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Prior to today's trading, shares of the global payments processor had gained 3.02% over the past month. This has outpaced the Business Services sector's loss of 0.98% and the S&P 500's loss of 0.73% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. In that report, analysts expect Visa to post earnings of $2.23 per share. This would mark year-over-year growth of 15.54%. Meanwhile, our latest consensus estimate is calling for revenue of $8.55 billion, up 9.82% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.65 per share and revenue of $32.6 billion, which would represent changes of +15.33% and +11.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Visa is holding a Forward P/E ratio of 28.58. For comparison, its industry has an average Forward P/E of 13.94, which means Visa is trading at a premium to the group.
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 1.25 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
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) Stock Sinks As Market Gains: What You Should Know
Visa (V - Free Report) closed at $247.22 in the latest trading session, marking a -0.03% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Prior to today's trading, shares of the global payments processor had gained 3.02% over the past month. This has outpaced the Business Services sector's loss of 0.98% and the S&P 500's loss of 0.73% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. In that report, analysts expect Visa to post earnings of $2.23 per share. This would mark year-over-year growth of 15.54%. Meanwhile, our latest consensus estimate is calling for revenue of $8.55 billion, up 9.82% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.65 per share and revenue of $32.6 billion, which would represent changes of +15.33% and +11.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Visa is holding a Forward P/E ratio of 28.58. For comparison, its industry has an average Forward P/E of 13.94, which means Visa is trading at a premium to the group.
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 1.25 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.