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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 $203.54, moving +1.03% from the previous trading session. This change lagged the S&P 500's 1.8% gain on the day. At the same time, the Dow added 1.68%, and the tech-heavy Nasdaq gained 2.33%.
Coming into today, shares of the global payments processor had lost 3.59% in the past month. In that same time, the Business Services sector lost 4.79%, while the S&P 500 lost 6.31%.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. On that day, V is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 25.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.03 billion, down 18.02% from the year-ago period.
Any recent changes to analyst estimates for V should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. V is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that V has a Forward P/E ratio of 34.61 right now. This represents a premium compared to its industry's average Forward P/E of 26.44.
Investors should also note that V has a PEG ratio of 2.64 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.48 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 54, which puts it in the top 22% 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 the most recent trading day at $203.54, moving +1.03% from the previous trading session. This change lagged the S&P 500's 1.8% gain on the day. At the same time, the Dow added 1.68%, and the tech-heavy Nasdaq gained 2.33%.
Coming into today, shares of the global payments processor had lost 3.59% in the past month. In that same time, the Business Services sector lost 4.79%, while the S&P 500 lost 6.31%.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. On that day, V is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 25.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.03 billion, down 18.02% from the year-ago period.
Any recent changes to analyst estimates for V should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. V is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that V has a Forward P/E ratio of 34.61 right now. This represents a premium compared to its industry's average Forward P/E of 26.44.
Investors should also note that V has a PEG ratio of 2.64 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.48 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 54, which puts it in the top 22% 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.