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Visa (V) Dips More Than Broader Markets: What You Should Know
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Visa (V - Free Report) closed the most recent trading day at $185.59, moving -1.11% from the previous trading session. This move lagged the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.15%, and the Nasdaq, a tech-heavy index, added 0.39%.
Heading into today, shares of the global payments processor had lost 6.36% over the past month, lagging the Business Services sector's loss of 5.4% and the S&P 500's loss of 3.51% in that time.
Visa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Visa to post earnings of $1.87 per share. This would mark year-over-year growth of 15.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.57 billion, up 15.48% from the year-ago period.
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.
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, 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 has moved 0.2% lower within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 22.43. Its industry sports an average Forward P/E of 16.65, so we one might conclude that Visa is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.35. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.05 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 161, which puts it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Visa (V) Dips More Than Broader Markets: What You Should Know
Visa (V - Free Report) closed the most recent trading day at $185.59, moving -1.11% from the previous trading session. This move lagged the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.15%, and the Nasdaq, a tech-heavy index, added 0.39%.
Heading into today, shares of the global payments processor had lost 6.36% over the past month, lagging the Business Services sector's loss of 5.4% and the S&P 500's loss of 3.51% in that time.
Visa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Visa to post earnings of $1.87 per share. This would mark year-over-year growth of 15.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.57 billion, up 15.48% from the year-ago period.
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.
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, 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 has moved 0.2% lower within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 22.43. Its industry sports an average Forward P/E of 16.65, so we one might conclude that Visa is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.35. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.05 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 161, which puts it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.