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Visa (V) Advances While Market Declines: Some Information for Investors
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In the latest market close, Visa (V - Free Report) reached $280.56, with a +0.19% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.
The global payments processor's shares have seen an increase of 1.31% over the last month, not keeping up with the Business Services sector's gain of 5.27% and the S&P 500's gain of 2.7%.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company's upcoming EPS is projected at $2.42, signifying a 15.79% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $8.6 billion, showing a 7.7% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.90 per share and a revenue of $35.7 billion, indicating changes of +12.88% and +9.35%, respectively, from the former year.
Any recent changes to analyst estimates for Visa should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Visa currently has a Forward P/E ratio of 28.28. This valuation marks a premium compared to its industry's average Forward P/E of 13.58.
It's also important to note that V currently trades at a PEG ratio of 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.15.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Visa (V) Advances While Market Declines: Some Information for Investors
In the latest market close, Visa (V - Free Report) reached $280.56, with a +0.19% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.
The global payments processor's shares have seen an increase of 1.31% over the last month, not keeping up with the Business Services sector's gain of 5.27% and the S&P 500's gain of 2.7%.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company's upcoming EPS is projected at $2.42, signifying a 15.79% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $8.6 billion, showing a 7.7% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.90 per share and a revenue of $35.7 billion, indicating changes of +12.88% and +9.35%, respectively, from the former year.
Any recent changes to analyst estimates for Visa should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Visa currently has a Forward P/E ratio of 28.28. This valuation marks a premium compared to its industry's average Forward P/E of 13.58.
It's also important to note that V currently trades at a PEG ratio of 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.15.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.