We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa (V) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Visa (V - Free Report) closed at $244.66, marking a +1.49% move from the previous day. This change outpaced the S&P 500's 0.07% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the global payments processor had gained 1.22% in the past month. In that same time, the Business Services sector gained 0.59%, while the S&P 500 gained 0.38%.
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 $2.23 per share. This would mark year-over-year growth of 15.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, up 9.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.65 per share and revenue of $32.59 billion. These totals would mark changes of +15.33% and +11.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Visa is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 27.86. For comparison, its industry has an average Forward P/E of 14.1, which means Visa is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. V's industry had an average PEG ratio of 1.25 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 109, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa (V) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Visa (V - Free Report) closed at $244.66, marking a +1.49% move from the previous day. This change outpaced the S&P 500's 0.07% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the global payments processor had gained 1.22% in the past month. In that same time, the Business Services sector gained 0.59%, while the S&P 500 gained 0.38%.
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 $2.23 per share. This would mark year-over-year growth of 15.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, up 9.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.65 per share and revenue of $32.59 billion. These totals would mark changes of +15.33% and +11.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Visa is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 27.86. For comparison, its industry has an average Forward P/E of 14.1, which means Visa is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. V's industry had an average PEG ratio of 1.25 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 109, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.