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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 $220.33, marking a -0.67% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Heading into today, shares of the global payments processor had gained 0.66% over the past month, outpacing the Business Services sector's loss of 1.97% and the S&P 500's gain of 0.07% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. The company is expected to report EPS of $1.97, up 10.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.74 billion, up 7.72% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.43 per share and revenue of $32.24 billion. These results would represent year-over-year changes of +12.4% and +10%, respectively.
It is also important to note the recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Visa is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 26.32. This valuation marks a premium compared to its industry's average Forward P/E of 15.28.
Also, we should mention that V has a PEG ratio of 1.74. 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. The Financial Transaction Services was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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 $220.33, marking a -0.67% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Heading into today, shares of the global payments processor had gained 0.66% over the past month, outpacing the Business Services sector's loss of 1.97% and the S&P 500's gain of 0.07% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. The company is expected to report EPS of $1.97, up 10.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.74 billion, up 7.72% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $8.43 per share and revenue of $32.24 billion. These results would represent year-over-year changes of +12.4% and +10%, respectively.
It is also important to note the recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Visa is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 26.32. This valuation marks a premium compared to its industry's average Forward P/E of 15.28.
Also, we should mention that V has a PEG ratio of 1.74. 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. The Financial Transaction Services was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.