Back to top

Image: Bigstock

Visa (V) Rises As Market Takes a Dip: Key Facts

Read MoreHide Full Article

Visa (V - Free Report) closed the latest trading day at $277.60, indicating a +0.96% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.93%. On the other hand, the Dow registered a loss of 0.41%, and the technology-centric Nasdaq decreased by 1.53%.

Coming into today, shares of the global payments processor had lost 0.51% in the past month. In that same time, the Business Services sector gained 1.6%, while the S&P 500 gained 2.17%.

Market participants will be closely following the financial results of Visa in its upcoming release. It is anticipated that the company will report an EPS of $2.58, marking a 10.73% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.49 billion, indicating a 10.24% increase compared to the same quarter of the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Visa. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Visa currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 27.71 right now. For comparison, its industry has an average Forward P/E of 16.48, which means Visa is trading at a premium to the group.

We can also see that V currently has a PEG ratio of 1.94. 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. V's industry had an average PEG ratio of 1.29 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Visa Inc. (V) - free report >>

Published in