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Visa (V) Registers a Bigger Fall Than the Market: Important Facts to Note
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Visa (V - Free Report) ended the recent trading session at $311.85, demonstrating a -0.41% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.23%. At the same time, the Dow lost 0.91%, and the tech-heavy Nasdaq gained 0.1%.
Shares of the global payments processor witnessed a loss of 9.32% over the previous month, beating the performance of the Business Services sector with its loss of 10.29% and the S&P 500's loss of 12.13%.
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 $2.68, reflecting a 6.77% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.56 billion, showing an 8.91% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.31 per share and a revenue of $39.58 billion, representing changes of +12.54% and +10.17%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Visa. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 27.7. This valuation marks a premium compared to its industry's average Forward P/E of 12.99.
One should further note that V currently holds a PEG ratio of 2.14. 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. The average PEG ratio for the Financial Transaction Services industry stood at 1.28 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Visa (V) Registers a Bigger Fall Than the Market: Important Facts to Note
Visa (V - Free Report) ended the recent trading session at $311.85, demonstrating a -0.41% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.23%. At the same time, the Dow lost 0.91%, and the tech-heavy Nasdaq gained 0.1%.
Shares of the global payments processor witnessed a loss of 9.32% over the previous month, beating the performance of the Business Services sector with its loss of 10.29% and the S&P 500's loss of 12.13%.
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 $2.68, reflecting a 6.77% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.56 billion, showing an 8.91% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.31 per share and a revenue of $39.58 billion, representing changes of +12.54% and +10.17%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Visa. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 27.7. This valuation marks a premium compared to its industry's average Forward P/E of 12.99.
One should further note that V currently holds a PEG ratio of 2.14. 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. The average PEG ratio for the Financial Transaction Services industry stood at 1.28 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.