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Visa (V) Gains But Lags Market: What You Should Know
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Visa (V - Free Report) closed at $222.10 in the latest trading session, marking a +0.46% move from the prior day. The stock lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Prior to today's trading, shares of the global payments processor had gained 3.78% over the past month. This has outpaced the Business Services sector's gain of 1.31% and the S&P 500's loss of 0.23% in that time.
Visa will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. In that report, analysts expect Visa to post earnings of $2 per share. This would mark year-over-year growth of 10.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.66 billion, up 8.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.28 per share and revenue of $31.73 billion. These totals would mark changes of +10.4% and +8.26%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Visa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 26.71. This valuation marks a premium compared to its industry's average Forward P/E of 14.14.
We can also see that V currently has a PEG ratio of 1.78. 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 0.87 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 90, which puts it in the top 36% 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) Gains But Lags Market: What You Should Know
Visa (V - Free Report) closed at $222.10 in the latest trading session, marking a +0.46% move from the prior day. The stock lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Prior to today's trading, shares of the global payments processor had gained 3.78% over the past month. This has outpaced the Business Services sector's gain of 1.31% and the S&P 500's loss of 0.23% in that time.
Visa will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. In that report, analysts expect Visa to post earnings of $2 per share. This would mark year-over-year growth of 10.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.66 billion, up 8.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.28 per share and revenue of $31.73 billion. These totals would mark changes of +10.4% and +8.26%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Visa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 26.71. This valuation marks a premium compared to its industry's average Forward P/E of 14.14.
We can also see that V currently has a PEG ratio of 1.78. 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 0.87 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 90, which puts it in the top 36% 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.