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Visa (V) Outperforms Broader Market: What You Need to Know
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Visa (V - Free Report) ended the recent trading session at $290.37, demonstrating a +1.05% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.13% for the day. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.
Shares of the global payments processor have appreciated by 7.47% over the course of the past month, outperforming the Business Services sector's gain of 6.81% and the S&P 500's gain of 3.67%.
The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company's earnings per share (EPS) are projected to be $2.58, reflecting a 10.73% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.49 billion, indicating a 10.24% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.92 per share and revenue of $35.8 billion, indicating changes of +13.11% and +9.64%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Visa is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.96. This indicates a premium in contrast to its industry's Forward P/E of 16.76.
We can additionally observe that V currently boasts a PEG ratio of 2.03. 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. V's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Visa (V) Outperforms Broader Market: What You Need to Know
Visa (V - Free Report) ended the recent trading session at $290.37, demonstrating a +1.05% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.13% for the day. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.
Shares of the global payments processor have appreciated by 7.47% over the course of the past month, outperforming the Business Services sector's gain of 6.81% and the S&P 500's gain of 3.67%.
The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company's earnings per share (EPS) are projected to be $2.58, reflecting a 10.73% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.49 billion, indicating a 10.24% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.92 per share and revenue of $35.8 billion, indicating changes of +13.11% and +9.64%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Visa is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.96. This indicates a premium in contrast to its industry's Forward P/E of 16.76.
We can additionally observe that V currently boasts a PEG ratio of 2.03. 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. V's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.