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Visa (V) Outpaces Stock Market Gains: What You Should Know

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Visa (V - Free Report) closed at $137.66 in the latest trading session, marking a +0.47% move from the prior day. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.68%.

Coming into today, shares of the global payments processor had gained 5.21% in the past month. In that same time, the Business Services sector gained 10.66%, while the S&P 500 gained 9.43%.

Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be January 30, 2019. On that day, V is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 15.74%. Our most recent consensus estimate is calling for quarterly revenue of $5.40 billion, up 11.01% from the year-ago period.

V's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $22.82 billion. These results would represent year-over-year changes of +15.4% and +10.73%, respectively.

It is also important to note the recent changes to analyst estimates for V. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. V currently has a Zacks Rank of #3 (Hold).

Digging into valuation, V currently has a Forward P/E ratio of 25.77. This valuation marks a premium compared to its industry's average Forward P/E of 17.91.

We can also see that V currently has a PEG ratio of 1.56. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.36 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 171, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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