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Visa (V) Exceeds Market Returns: Some Facts to Consider
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Visa (V - Free Report) closed the latest trading day at $285.05, indicating a +0.71% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.82%.
Shares of the global payments processor witnessed a gain of 1.61% over the previous month, beating the performance of the Business Services sector with its gain of 0.67% and underperforming the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. On that day, Visa is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 16.27%. In the meantime, our current consensus estimate forecasts the revenue to be $8.6 billion, indicating a 7.65% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and revenue of $35.69 billion, which would represent changes of +12.88% and +9.29%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 28.6. This expresses a premium compared to the average Forward P/E of 13.69 of its industry.
Investors should also note that V has a PEG ratio of 1.95 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Visa (V) Exceeds Market Returns: Some Facts to Consider
Visa (V - Free Report) closed the latest trading day at $285.05, indicating a +0.71% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.82%.
Shares of the global payments processor witnessed a gain of 1.61% over the previous month, beating the performance of the Business Services sector with its gain of 0.67% and underperforming the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. On that day, Visa is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 16.27%. In the meantime, our current consensus estimate forecasts the revenue to be $8.6 billion, indicating a 7.65% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and revenue of $35.69 billion, which would represent changes of +12.88% and +9.29%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 28.6. This expresses a premium compared to the average Forward P/E of 13.69 of its industry.
Investors should also note that V has a PEG ratio of 1.95 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.