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Visa (V) Dips More Than Broader Markets: What You Should Know
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Visa (V - Free Report) closed at $211.90 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's 0.32% loss on the day. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the global payments processor had lost 0.98% over the past month. This has lagged the Business Services sector's gain of 1.34% and the S&P 500's gain of 4.4% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release. The company is expected to report EPS of $1.27, down 8.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.56 billion, down 5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $23.28 billion, which would represent changes of +8.93% and +6.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. V is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, V currently has a Forward P/E ratio of 39.09. For comparison, its industry has an average Forward P/E of 24.26, which means V is trading at a premium to the group.
We can also see that V currently has a PEG ratio of 2.29. 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 2.19 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.
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Visa (V) Dips More Than Broader Markets: What You Should Know
Visa (V - Free Report) closed at $211.90 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's 0.32% loss on the day. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the global payments processor had lost 0.98% over the past month. This has lagged the Business Services sector's gain of 1.34% and the S&P 500's gain of 4.4% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release. The company is expected to report EPS of $1.27, down 8.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.56 billion, down 5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $23.28 billion, which would represent changes of +8.93% and +6.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. V is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, V currently has a Forward P/E ratio of 39.09. For comparison, its industry has an average Forward P/E of 24.26, which means V is trading at a premium to the group.
We can also see that V currently has a PEG ratio of 2.29. 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 2.19 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.