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Visa (V) Stock Sinks As Market Gains: What You Should Know

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Visa (V - Free Report) closed the most recent trading day at $233.36, moving -0.73% from the previous trading session. This change lagged the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.45%.

Coming into today, shares of the global payments processor had lost 3.09% in the past month. In that same time, the Business Services sector lost 0.6%, while the S&P 500 lost 1.38%.

Visa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.23, up 15.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.55 billion, up 9.79% from the prior-year quarter.

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.

Any recent changes to analyst estimates for Visa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Visa is currently a Zacks Rank #3 (Hold).

Digging into valuation, Visa currently has a Forward P/E ratio of 27.17. This valuation marks a premium compared to its industry's average Forward P/E of 13.68.

Meanwhile, V's PEG ratio is currently 1.77. 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 1.19 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 148, putting it in the bottom 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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