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Visa (V) Gains As Market Dips: What You Should Know

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In the latest trading session, Visa (V - Free Report) closed at $335.81, marking a +0.19% move from the previous day. This move outpaced the S&P 500's daily loss of 0.17%. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the global payments processor had gained 0.19% over the past month. This has outpaced the Business Services sector's loss of 3.14% and the S&P 500's loss of 3.94% in that time.

The upcoming earnings release of Visa will be of great interest to investors. The company's earnings report is expected on April 29, 2025. The company is expected to report EPS of $2.69, up 7.17% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $9.56 billion, indicating an 8.91% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $11.32 per share and a revenue of $39.58 billion, demonstrating changes of +12.64% and +10.17%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Visa. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% 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 29.62. This valuation marks a premium compared to its industry's average Forward P/E of 14.64.

Meanwhile, V's PEG ratio is currently 2.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.31 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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