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Visa (V) Gains As Market Dips: What You Should Know
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Visa (V - Free Report) closed at $191.71 in the latest trading session, marking a +0.53% move from the prior day. This move outpaced the S&P 500's daily loss of 0.72%.
Prior to today's trading, shares of the global payments processor had lost 16.05% over the past month. This has lagged the Business Services sector's loss of 11.71% and the S&P 500's loss of 6.24% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $1.65, up 19.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.87 billion, up 19.85% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $7.12 per share and revenue of $28.72 billion. These results would represent year-over-year changes of +20.47% and +19.13%, respectively.
Investors might also notice recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Visa currently has a Forward P/E ratio of 26.78. For comparison, its industry has an average Forward P/E of 14.85, which means Visa is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.61 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. V's industry had an average PEG ratio of 0.94 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 213, putting it in the bottom 17% 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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Visa (V) Gains As Market Dips: What You Should Know
Visa (V - Free Report) closed at $191.71 in the latest trading session, marking a +0.53% move from the prior day. This move outpaced the S&P 500's daily loss of 0.72%.
Prior to today's trading, shares of the global payments processor had lost 16.05% over the past month. This has lagged the Business Services sector's loss of 11.71% and the S&P 500's loss of 6.24% in that time.
Investors will be hoping for strength from Visa as it approaches its next earnings release. The company is expected to report EPS of $1.65, up 19.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.87 billion, up 19.85% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $7.12 per share and revenue of $28.72 billion. These results would represent year-over-year changes of +20.47% and +19.13%, respectively.
Investors might also notice recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Visa currently has a Forward P/E ratio of 26.78. For comparison, its industry has an average Forward P/E of 14.85, which means Visa is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.61 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. V's industry had an average PEG ratio of 0.94 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 213, putting it in the bottom 17% 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.