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Here's Why Visa (V) Gained But Lagged the Market Today
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The most recent trading session ended with Visa (V - Free Report) standing at $262.38, reflecting a +1.09% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Shares of the global payments processor have appreciated by 5.11% over the course of the past month, underperforming the Business Services sector's gain of 8.25% and the S&P 500's gain of 5.37%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.33, reflecting a 6.88% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.51 billion, up 7.21% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $9.90 per share and revenue of $35.75 billion. These results would represent year-over-year changes of +12.88% and +9.48%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Right now, Visa possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Visa is presently trading at a Forward P/E ratio of 26.22. This represents a premium compared to its industry's average Forward P/E of 14.2.
Also, we should mention that V has a PEG ratio of 1.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry had an average PEG ratio of 1.18 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 134, this industry ranks in the bottom 47% of all industries, numbering over 250.
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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Here's Why Visa (V) Gained But Lagged the Market Today
The most recent trading session ended with Visa (V - Free Report) standing at $262.38, reflecting a +1.09% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Shares of the global payments processor have appreciated by 5.11% over the course of the past month, underperforming the Business Services sector's gain of 8.25% and the S&P 500's gain of 5.37%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.33, reflecting a 6.88% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.51 billion, up 7.21% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $9.90 per share and revenue of $35.75 billion. These results would represent year-over-year changes of +12.88% and +9.48%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Right now, Visa possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Visa is presently trading at a Forward P/E ratio of 26.22. This represents a premium compared to its industry's average Forward P/E of 14.2.
Also, we should mention that V has a PEG ratio of 1.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry had an average PEG ratio of 1.18 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 134, this industry ranks in the bottom 47% of all industries, numbering over 250.
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.