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Visa (V) Stock Moves -0.57%: What You Should Know

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In the latest trading session, Visa (V - Free Report) closed at $258.87, marking a -0.57% move from the previous day. This change traded in line with S&P 500. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 1.64%.

The global payments processor's stock has climbed by 2.32% in the past month, falling short of the Business Services sector's gain of 4.19% and the S&P 500's gain of 4%.

The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company is predicted to post an EPS of $2.33, indicating a 6.88% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.51 billion, up 7.21% from the prior-year quarter.

V's full-year Zacks Consensus Estimates are calling for earnings of $9.90 per share and revenue of $35.74 billion. These results would represent year-over-year changes of +12.88% and +9.46%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. As of now, Visa holds a Zacks Rank of #3 (Hold).

In terms of valuation, Visa is presently being traded at a Forward P/E ratio of 26.31. Its industry sports an average Forward P/E of 12.84, so one might conclude that Visa is trading at a premium comparatively.

Investors should also note that V has a PEG ratio of 1.76 right now. 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 had an average PEG ratio of 1.16 as trading concluded yesterday.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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