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The most recent trading session ended with Visa (V - Free Report) standing at $278.28, reflecting a -0.29% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq added 0.11%.
The global payments processor's stock has dropped by 1.44% in the past month, falling short of the Business Services sector's loss of 0.08% and the S&P 500's gain of 3.32%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company is expected to report EPS of $2.42, up 15.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.6 billion, up 7.71% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.89 per share and a revenue of $35.7 billion, signifying shifts of +12.77% and +9.32%, respectively, from the last year.
Any recent changes to analyst estimates for Visa should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.17% downward. Visa currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.23. This indicates a premium in contrast to its industry's Forward P/E of 15.16.
Also, we should mention that V has a PEG ratio of 1.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.29 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Here's Why Visa (V) Fell More Than Broader Market
The most recent trading session ended with Visa (V - Free Report) standing at $278.28, reflecting a -0.29% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq added 0.11%.
The global payments processor's stock has dropped by 1.44% in the past month, falling short of the Business Services sector's loss of 0.08% and the S&P 500's gain of 3.32%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company is expected to report EPS of $2.42, up 15.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.6 billion, up 7.71% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.89 per share and a revenue of $35.7 billion, signifying shifts of +12.77% and +9.32%, respectively, from the last year.
Any recent changes to analyst estimates for Visa should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.17% downward. Visa currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.23. This indicates a premium in contrast to its industry's Forward P/E of 15.16.
Also, we should mention that V has a PEG ratio of 1.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.29 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.