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Visa (V) Gains But Lags Market: What You Should Know
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Visa (V - Free Report) closed at $242.70 in the latest trading session, marking a +0.95% move from the prior day. This move lagged the S&P 500's daily gain of 1.52%.
Coming into today, shares of the global payments processor had gained 2.6% in the past month. In that same time, the Business Services sector lost 16.18%, while the S&P 500 gained 2.41%.
Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be July 27, 2021. The company is expected to report EPS of $1.32, up 24.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.82 billion, up 20.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.60 per share and revenue of $23.5 billion, which would represent changes of +11.11% and +7.58%, respectively, from the prior year.
Any recent changes to analyst estimates for V should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. 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 42.91 right now. Its industry sports an average Forward P/E of 22.55, so we one might conclude that V is trading at a premium comparatively.
Also, we should mention that V has a PEG ratio of 2.29. 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 1.24 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 93, which puts it in the top 37% 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.
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Visa (V) Gains But Lags Market: What You Should Know
Visa (V - Free Report) closed at $242.70 in the latest trading session, marking a +0.95% move from the prior day. This move lagged the S&P 500's daily gain of 1.52%.
Coming into today, shares of the global payments processor had gained 2.6% in the past month. In that same time, the Business Services sector lost 16.18%, while the S&P 500 gained 2.41%.
Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be July 27, 2021. The company is expected to report EPS of $1.32, up 24.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.82 billion, up 20.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.60 per share and revenue of $23.5 billion, which would represent changes of +11.11% and +7.58%, respectively, from the prior year.
Any recent changes to analyst estimates for V should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. 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 42.91 right now. Its industry sports an average Forward P/E of 22.55, so we one might conclude that V is trading at a premium comparatively.
Also, we should mention that V has a PEG ratio of 2.29. 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 1.24 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 93, which puts it in the top 37% 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.