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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) closed the most recent trading day at $309.27, moving -1.64% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the global payments processor had lost 4.19% lagged the Business Services sector's loss of 3.27% and the S&P 500's loss of 2.16%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.09, signifying a 11.96% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.7 billion, up 11.51% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.84 per share and revenue of $44.5 billion. These totals would mark changes of +11.94% and +11.26%, respectively, from last year.
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 business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Visa is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 24.48. This signifies a premium in comparison to the average Forward P/E of 10.77 for its industry.
It's also important to note that V currently trades at a PEG ratio of 1.8. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.92 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 29% of over 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) Registers a Bigger Fall Than the Market: Important Facts to Note
Visa (V - Free Report) closed the most recent trading day at $309.27, moving -1.64% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the global payments processor had lost 4.19% lagged the Business Services sector's loss of 3.27% and the S&P 500's loss of 2.16%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.09, signifying a 11.96% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.7 billion, up 11.51% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.84 per share and revenue of $44.5 billion. These totals would mark changes of +11.94% and +11.26%, respectively, from last year.
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 business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Visa is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 24.48. This signifies a premium in comparison to the average Forward P/E of 10.77 for its industry.
It's also important to note that V currently trades at a PEG ratio of 1.8. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.92 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 29% of over 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.