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

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Visa (V - Free Report) closed the most recent trading day at $175.28, moving +0.77% from the previous trading session. This change outpaced the S&P 500's 0.29% gain on the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.22%.

Coming into today, shares of the global payments processor had gained 9.67% in the past month. In that same time, the Business Services sector gained 5.42%, while the S&P 500 gained 7.86%.

V will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2019. In that report, analysts expect V to post earnings of $1.33 per share. This would mark year-over-year growth of 10.83%. Meanwhile, our latest consensus estimate is calling for revenue of $5.70 billion, up 8.78% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.37 per share and revenue of $22.75 billion, which would represent changes of +16.49% and +10.4%, respectively, from the prior year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. V is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, V currently has a Forward P/E ratio of 32.41. This valuation marks a premium compared to its industry's average Forward P/E of 24.18.

We can also see that V currently has a PEG ratio of 1.97. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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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