Back to top

Image: Bigstock

Visa (V) Stock Dips While Market Gains: Key Facts

Read MoreHide Full Article

The most recent trading session ended with Visa (V - Free Report) standing at $256.45, reflecting a -0.09% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.82%, and the technology-dominated Nasdaq saw an increase of 0.55%.

Shares of the global payments processor witnessed a gain of 5.52% over the previous month, trailing the performance of the Business Services sector with its gain of 11.92% and the S&P 500's gain of 9.16%.

The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. In that report, analysts expect Visa to post earnings of $2.33 per share. This would mark year-over-year growth of 6.88%. Alongside, our most recent consensus estimate is anticipating revenue of $8.51 billion, indicating a 7.19% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and a revenue of $35.75 billion, representing changes of +12.88% and +9.48%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% upward. Visa is currently a Zacks Rank #3 (Hold).

Looking at valuation, Visa is presently trading at a Forward P/E ratio of 25.93. For comparison, its industry has an average Forward P/E of 13.43, which means Visa is trading at a premium to the group.

Meanwhile, V's PEG ratio is currently 1.71. 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 average PEG ratio for the Financial Transaction Services industry stood at 1.14 at the close of the market yesterday.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 35% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Visa Inc. (V) - free report >>

Published in