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Visa (V - Free Report) closed the latest trading day at $273.76, indicating a -1.5% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.96% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
Shares of the global payments processor have depreciated by 0.52% over the course of the past month, underperforming the Business Services sector's gain of 4.01% and the S&P 500's gain of 4.3%.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. It is anticipated that the company will report an EPS of $2.58, marking a 10.73% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.47 billion, showing a 10.06% escalation compared to the year-ago quarter.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. At present, Visa boasts a Zacks Rank of #2 (Buy).
In the context of valuation, Visa is at present trading with a Forward P/E ratio of 25.08. This indicates a premium in contrast to its industry's Forward P/E of 17.33.
It is also worth noting that V currently has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.33.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Visa (V) Fell More Than Broader Market
Visa (V - Free Report) closed the latest trading day at $273.76, indicating a -1.5% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.96% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
Shares of the global payments processor have depreciated by 0.52% over the course of the past month, underperforming the Business Services sector's gain of 4.01% and the S&P 500's gain of 4.3%.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. It is anticipated that the company will report an EPS of $2.58, marking a 10.73% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.47 billion, showing a 10.06% escalation compared to the year-ago quarter.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. At present, Visa boasts a Zacks Rank of #2 (Buy).
In the context of valuation, Visa is at present trading with a Forward P/E ratio of 25.08. This indicates a premium in contrast to its industry's Forward P/E of 17.33.
It is also worth noting that V currently has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.33.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.