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Visa (V) Outpaces Stock Market Gains: What You Should Know
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Visa (V - Free Report) closed at $214.38 in the latest trading session, marking a +1.14% move from the prior day. This change outpaced the S&P 500's 0.92% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Prior to today's trading, shares of the global payments processor had gained 0.45% over the past month. This has outpaced the Business Services sector's loss of 15.86% and the S&P 500's loss of 0.85% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. On that day, Visa is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 19.01%. Meanwhile, our latest consensus estimate is calling for revenue of $6.77 billion, up 19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.02 per share and revenue of $28.19 billion. These totals would mark changes of +18.78% and +16.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 0.36% lower. Visa is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Visa is holding a Forward P/E ratio of 30.2. For comparison, its industry has an average Forward P/E of 17.6, which means Visa is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. V's industry had an average PEG ratio of 1.13 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 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
View the Zacks #1 Rank List
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Visa (V) Outpaces Stock Market Gains: What You Should Know
Visa (V - Free Report) closed at $214.38 in the latest trading session, marking a +1.14% move from the prior day. This change outpaced the S&P 500's 0.92% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Prior to today's trading, shares of the global payments processor had gained 0.45% over the past month. This has outpaced the Business Services sector's loss of 15.86% and the S&P 500's loss of 0.85% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. On that day, Visa is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 19.01%. Meanwhile, our latest consensus estimate is calling for revenue of $6.77 billion, up 19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.02 per share and revenue of $28.19 billion. These totals would mark changes of +18.78% and +16.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 0.36% lower. Visa is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Visa is holding a Forward P/E ratio of 30.2. For comparison, its industry has an average Forward P/E of 17.6, which means Visa is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. V's industry had an average PEG ratio of 1.13 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 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.