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Visa (V) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Visa (V - Free Report) closed at $209.93, marking a -1.06% move from the previous day. This change lagged the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.
Coming into today, shares of the global payments processor had gained 1.73% in the past month. In that same time, the Business Services sector lost 2.39%, while the S&P 500 gained 0.32%.
Investors will be hoping for strength from Visa as it approaches its next earnings release. In that report, analysts expect Visa to post earnings of $1.73 per share. This would mark year-over-year growth of 16.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.03 billion, up 14.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $28.59 billion, which would represent changes of +21.15% and +18.63%, respectively, from the prior year.
Any recent changes to analyst estimates for Visa should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. Visa is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 29.64 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.68.
Investors should also note that V has a PEG ratio of 1.8 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Visa (V) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Visa (V - Free Report) closed at $209.93, marking a -1.06% move from the previous day. This change lagged the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.
Coming into today, shares of the global payments processor had gained 1.73% in the past month. In that same time, the Business Services sector lost 2.39%, while the S&P 500 gained 0.32%.
Investors will be hoping for strength from Visa as it approaches its next earnings release. In that report, analysts expect Visa to post earnings of $1.73 per share. This would mark year-over-year growth of 16.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.03 billion, up 14.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $28.59 billion, which would represent changes of +21.15% and +18.63%, respectively, from the prior year.
Any recent changes to analyst estimates for Visa should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. Visa is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 29.64 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.68.
Investors should also note that V has a PEG ratio of 1.8 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.