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Visa (V) Gains But Lags Market: What You Should Know
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Visa (V - Free Report) closed at $209.10 in the latest trading session, marking a +0.62% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the global payments processor had gained 7.16% over the past month. This has outpaced the Business Services sector's gain of 4.31% and the S&P 500's gain of 3.49% in that time.
Visa will be looking to display strength as it nears its next earnings release. On that day, Visa is projected to report earnings of $2 per share, which would represent year-over-year growth of 10.5%. Our most recent consensus estimate is calling for quarterly revenue of $7.68 billion, up 8.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.30 per share and revenue of $31.9 billion. These totals would mark changes of +10.67% and +8.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Visa. 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.
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.
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 remained stagnant. Visa is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 25.03. Its industry sports an average Forward P/E of 14.34, so we one might conclude that Visa is trading at a premium comparatively.
It is also worth noting that V currently has a PEG ratio of 1.67. 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 was holding an average PEG ratio of 0.81 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Visa (V) Gains But Lags Market: What You Should Know
Visa (V - Free Report) closed at $209.10 in the latest trading session, marking a +0.62% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the global payments processor had gained 7.16% over the past month. This has outpaced the Business Services sector's gain of 4.31% and the S&P 500's gain of 3.49% in that time.
Visa will be looking to display strength as it nears its next earnings release. On that day, Visa is projected to report earnings of $2 per share, which would represent year-over-year growth of 10.5%. Our most recent consensus estimate is calling for quarterly revenue of $7.68 billion, up 8.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.30 per share and revenue of $31.9 billion. These totals would mark changes of +10.67% and +8.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Visa. 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.
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.
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 remained stagnant. Visa is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 25.03. Its industry sports an average Forward P/E of 14.34, so we one might conclude that Visa is trading at a premium comparatively.
It is also worth noting that V currently has a PEG ratio of 1.67. 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 was holding an average PEG ratio of 0.81 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.