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Visa (V) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Visa (V - Free Report) closed at $146.18, marking a -1.2% move from the previous day. The stock lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 1.43%.
Heading into today, shares of the global payments processor had gained 5.11% over the past month, outpacing the Business Services sector's gain of 4.26% and the S&P 500's gain of 2.44% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be October 24, 2018. In that report, analysts expect V to post earnings of $1.20 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.42 billion, up 11.56% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $4.61 per share and revenue of $20.59 billion. These results would represent year-over-year changes of +32.47% and +12.16%, respectively.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. V is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that V has a Forward P/E ratio of 32.1 right now. For comparison, its industry has an average Forward P/E of 23.45, which means V is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.83 right now. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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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Visa (V) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Visa (V - Free Report) closed at $146.18, marking a -1.2% move from the previous day. The stock lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 1.43%.
Heading into today, shares of the global payments processor had gained 5.11% over the past month, outpacing the Business Services sector's gain of 4.26% and the S&P 500's gain of 2.44% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be October 24, 2018. In that report, analysts expect V to post earnings of $1.20 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.42 billion, up 11.56% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $4.61 per share and revenue of $20.59 billion. These results would represent year-over-year changes of +32.47% and +12.16%, respectively.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. V is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that V has a Forward P/E ratio of 32.1 right now. For comparison, its industry has an average Forward P/E of 23.45, which means V is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.83 right now. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.