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Visa (V) Gains But Lags Market: What You Should Know
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In the latest market close, Visa (V - Free Report) reached $240.07, with a +1.01% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.06%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.
The the stock of global payments processor has fallen by 1.41% in the past month, leading the Business Services sector's loss of 3.86% and the S&P 500's loss of 3%.
Market participants will be closely following the financial results of Visa in its upcoming release. The company plans to announce its earnings on October 24, 2023. The company's upcoming EPS is projected at $2.23, signifying a 15.54% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $8.55 billion, indicating a 9.76% upward movement from the same quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Visa. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 24.35. This represents a premium compared to its industry's average Forward P/E of 13.14.
One should further note that V currently holds a PEG ratio of 1.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry currently had an average PEG ratio of 1.16 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 177, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.
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Visa (V) Gains But Lags Market: What You Should Know
In the latest market close, Visa (V - Free Report) reached $240.07, with a +1.01% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.06%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.
The the stock of global payments processor has fallen by 1.41% in the past month, leading the Business Services sector's loss of 3.86% and the S&P 500's loss of 3%.
Market participants will be closely following the financial results of Visa in its upcoming release. The company plans to announce its earnings on October 24, 2023. The company's upcoming EPS is projected at $2.23, signifying a 15.54% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $8.55 billion, indicating a 9.76% upward movement from the same quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Visa. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 24.35. This represents a premium compared to its industry's average Forward P/E of 13.14.
One should further note that V currently holds a PEG ratio of 1.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry currently had an average PEG ratio of 1.16 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 177, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.