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Visa (V) Gains But Lags Market: What You Should Know
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Visa (V - Free Report) closed the most recent trading day at $233.60, moving +0.05% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 2.51%.
Prior to today's trading, shares of the global payments processor had gained 7.03% over the past month. This has outpaced the Business Services sector's gain of 3.21% and the S&P 500's gain of 6.17% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. This is expected to be April 25, 2023. On that day, Visa is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 10.06%. Meanwhile, our latest consensus estimate is calling for revenue of $7.74 billion, up 7.71% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.43 per share and revenue of $32.25 billion. These results would represent year-over-year changes of +12.4% and +10.02%, respectively.
Investors might also notice recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest 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.
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 0.02% higher within the past month. Visa is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 27.7 right now. This represents a premium compared to its industry's average Forward P/E of 13.83.
It is also worth noting that V currently has a PEG ratio of 1.83. 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. The Financial Transaction Services was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Visa (V) Gains But Lags Market: What You Should Know
Visa (V - Free Report) closed the most recent trading day at $233.60, moving +0.05% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 2.51%.
Prior to today's trading, shares of the global payments processor had gained 7.03% over the past month. This has outpaced the Business Services sector's gain of 3.21% and the S&P 500's gain of 6.17% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. This is expected to be April 25, 2023. On that day, Visa is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 10.06%. Meanwhile, our latest consensus estimate is calling for revenue of $7.74 billion, up 7.71% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.43 per share and revenue of $32.25 billion. These results would represent year-over-year changes of +12.4% and +10.02%, respectively.
Investors might also notice recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest 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.
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 0.02% higher within the past month. Visa is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 27.7 right now. This represents a premium compared to its industry's average Forward P/E of 13.83.
It is also worth noting that V currently has a PEG ratio of 1.83. 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. The Financial Transaction Services was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.