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Visa (V) Increases Yet Falls Behind Market: What Investors Need to Know
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Visa (V - Free Report) closed at $269.25 in the latest trading session, marking a +0.3% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
Heading into today, shares of the global payments processor had lost 1% over the past month, lagging the Business Services sector's gain of 2.71% and the S&P 500's gain of 3.82% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company's earnings report is set to go public on July 23, 2024. On that day, Visa is projected to report earnings of $2.41 per share, which would represent year-over-year growth of 11.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.91 billion, up 9.65% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.94 per share and a revenue of $35.87 billion, representing changes of +13.34% and +9.86%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Visa currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 27.01 right now. This expresses a premium compared to the average Forward P/E of 15.33 of its industry.
One should further note that V currently holds a PEG ratio of 1.87. 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 industry had an average PEG ratio of 1.01 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 33% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Visa (V) Increases Yet Falls Behind Market: What Investors Need to Know
Visa (V - Free Report) closed at $269.25 in the latest trading session, marking a +0.3% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
Heading into today, shares of the global payments processor had lost 1% over the past month, lagging the Business Services sector's gain of 2.71% and the S&P 500's gain of 3.82% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company's earnings report is set to go public on July 23, 2024. On that day, Visa is projected to report earnings of $2.41 per share, which would represent year-over-year growth of 11.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.91 billion, up 9.65% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.94 per share and a revenue of $35.87 billion, representing changes of +13.34% and +9.86%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Visa currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 27.01 right now. This expresses a premium compared to the average Forward P/E of 15.33 of its industry.
One should further note that V currently holds a PEG ratio of 1.87. 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 industry had an average PEG ratio of 1.01 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 33% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.