We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa (V) Dips More Than Broader Market: What You Should Know
Read MoreHide Full Article
In the latest close session, Visa (V - Free Report) was down 3.38% at $295.19. The stock's change was less than the S&P 500's daily loss of 1.67%. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Shares of the global payments processor have depreciated by 3.53% over the course of the past month, outperforming the Business Services sector's loss of 5.83%, and the S&P 500's loss of 6.15%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.09, indicating a 11.96% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.7 billion, up 11.51% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.84 per share and revenue of $44.5 billion, which would represent changes of +11.94% and +11.26%, respectively, from the prior year.
Any recent changes to analyst estimates for Visa should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Visa boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Visa is currently being traded at a Forward P/E ratio of 23.79. Its industry sports an average Forward P/E of 9.5, so one might conclude that Visa is trading at a premium comparatively.
We can also see that V currently has a PEG ratio of 1.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Visa (V) Dips More Than Broader Market: What You Should Know
In the latest close session, Visa (V - Free Report) was down 3.38% at $295.19. The stock's change was less than the S&P 500's daily loss of 1.67%. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Shares of the global payments processor have depreciated by 3.53% over the course of the past month, outperforming the Business Services sector's loss of 5.83%, and the S&P 500's loss of 6.15%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.09, indicating a 11.96% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.7 billion, up 11.51% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.84 per share and revenue of $44.5 billion, which would represent changes of +11.94% and +11.26%, respectively, from the prior year.
Any recent changes to analyst estimates for Visa should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Visa boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Visa is currently being traded at a Forward P/E ratio of 23.79. Its industry sports an average Forward P/E of 9.5, so one might conclude that Visa is trading at a premium comparatively.
We can also see that V currently has a PEG ratio of 1.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.