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Visa (V) Increases Yet Falls Behind Market: What Investors Need to Know
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The latest trading session saw Visa (V - Free Report) ending at $262.54, denoting a +1.1% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.41%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 2.2%.
Coming into today, shares of the global payments processor had gained 1.54% in the past month. In that same time, the Business Services sector gained 1.96%, while the S&P 500 gained 2.9%.
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. Our most recent consensus estimate is calling for quarterly revenue of $8.51 billion, up 7.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and revenue of $35.74 billion, which would represent changes of +12.88% and +12.29%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. Visa is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 26.24. This represents a premium compared to its industry's average Forward P/E of 12.6.
Also, we should mention that V has a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Increases Yet Falls Behind Market: What Investors Need to Know
The latest trading session saw Visa (V - Free Report) ending at $262.54, denoting a +1.1% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.41%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 2.2%.
Coming into today, shares of the global payments processor had gained 1.54% in the past month. In that same time, the Business Services sector gained 1.96%, while the S&P 500 gained 2.9%.
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. Our most recent consensus estimate is calling for quarterly revenue of $8.51 billion, up 7.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and revenue of $35.74 billion, which would represent changes of +12.88% and +12.29%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. Visa is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 26.24. This represents a premium compared to its industry's average Forward P/E of 12.6.
Also, we should mention that V has a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.