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Visa (V) Gains But Lags Market: What You Should Know
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Visa (V - Free Report) closed at $187.17 in the latest trading session, marking a +1.04% move from the prior day. The stock lagged the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Visa will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. On that day, Visa is projected to report earnings of $1.86 per share, which would represent year-over-year growth of 14.81%. Meanwhile, our latest consensus estimate is calling for revenue of $7.55 billion, up 15.12% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 0.69% lower. Visa is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 22.25. Its industry sports an average Forward P/E of 15.87, so we one might conclude that Visa is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.33. 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. The Financial Transaction Services industry currently had an average PEG ratio of 0.95 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 174, which puts it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Visa (V) Gains But Lags Market: What You Should Know
Visa (V - Free Report) closed at $187.17 in the latest trading session, marking a +1.04% move from the prior day. The stock lagged the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Visa will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. On that day, Visa is projected to report earnings of $1.86 per share, which would represent year-over-year growth of 14.81%. Meanwhile, our latest consensus estimate is calling for revenue of $7.55 billion, up 15.12% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 0.69% lower. Visa is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 22.25. Its industry sports an average Forward P/E of 15.87, so we one might conclude that Visa is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.33. 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. The Financial Transaction Services industry currently had an average PEG ratio of 0.95 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 174, which puts it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.