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

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Visa (V - Free Report) closed the most recent trading day at $132.33, moving -1.49% from the previous trading session. This change lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 1.55%, while the tech-heavy Nasdaq added 1.27%.

Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $1.24, up 14.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.39 billion, up 10.96% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.34 per share and revenue of $22.84 billion, which would represent changes of +15.84% and +10.83%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for V. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. V is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, V is holding a Forward P/E ratio of 25.16. This represents a premium compared to its industry's average Forward P/E of 19.99.

It is also worth noting that V currently has a PEG ratio of 1.46. 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 was holding an average PEG ratio of 1.48 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 89, putting 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.

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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