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Visa (V) Stock Sinks As Market Gains: What You Should Know
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The latest trading session saw Visa (V - Free Report) ending at $285.34, denoting a -0.09% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.45%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.84%.
Heading into today, shares of the global payments processor had gained 9.9% over the past month, outpacing the Business Services sector's gain of 4.87% and the S&P 500's gain of 2.54% 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 per share (EPS) are projected to be $2.58, reflecting a 10.73% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.49 billion, reflecting a 10.24% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.92 per share and a revenue of $35.8 billion, signifying shifts of +13.11% and +9.64%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.79. This indicates a premium in contrast to its industry's Forward P/E of 16.37.
Also, we should mention that V has a PEG ratio of 2.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. V's industry had an average PEG ratio of 1.24 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 77, which puts it in the top 31% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Visa (V) Stock Sinks As Market Gains: What You Should Know
The latest trading session saw Visa (V - Free Report) ending at $285.34, denoting a -0.09% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.45%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.84%.
Heading into today, shares of the global payments processor had gained 9.9% over the past month, outpacing the Business Services sector's gain of 4.87% and the S&P 500's gain of 2.54% 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 per share (EPS) are projected to be $2.58, reflecting a 10.73% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.49 billion, reflecting a 10.24% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.92 per share and a revenue of $35.8 billion, signifying shifts of +13.11% and +9.64%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.79. This indicates a premium in contrast to its industry's Forward P/E of 16.37.
Also, we should mention that V has a PEG ratio of 2.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. V's industry had an average PEG ratio of 1.24 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 77, which puts it in the top 31% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.