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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 $231.32, moving +0.92% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.82%.

Coming into today, shares of the global payments processor had gained 4.53% in the past month. In that same time, the Business Services sector gained 0.91%, while the S&P 500 gained 2.31%.

In that report, analysts expect V to post earnings of $1.33 per share. This would mark year-over-year growth of 25.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.81 billion, up 20.09% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.58 per share and revenue of $23.45 billion. These totals would mark changes of +10.71% and +7.32%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 1.62% higher. V is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note V's current valuation metrics, including its Forward P/E ratio of 41.05. Its industry sports an average Forward P/E of 23.84, so we one might conclude that V is trading at a premium comparatively.

It is also worth noting that V currently has a PEG ratio of 2.19. 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. V's industry had an average PEG ratio of 1.6 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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