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Visa (V) Increases Yet Falls Behind Market: What Investors Need to Know
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Visa (V - Free Report) closed at $308.95 in the latest trading session, marking a +2.12% move from the prior day. The stock's change was less than the S&P 500's daily gain of 2.51%. Meanwhile, the Dow gained 2.85%, and the Nasdaq, a tech-heavy index, added 2.8%.
The stock of global payments processor has fallen by 3.78% in the past month, leading the Business Services sector's loss of 6.05% and undershooting the S&P 500's loss of 1.66%.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company's upcoming EPS is projected at $3.09, signifying a 11.96% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $10.7 billion, reflecting a 11.51% rise from the equivalent quarter last year.
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.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Visa currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 23.57. This indicates a premium in contrast to its industry's Forward P/E of 11.29.
Meanwhile, V's PEG ratio is currently 1.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. V's industry had an average PEG ratio of 0.81 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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) Increases Yet Falls Behind Market: What Investors Need to Know
Visa (V - Free Report) closed at $308.95 in the latest trading session, marking a +2.12% move from the prior day. The stock's change was less than the S&P 500's daily gain of 2.51%. Meanwhile, the Dow gained 2.85%, and the Nasdaq, a tech-heavy index, added 2.8%.
The stock of global payments processor has fallen by 3.78% in the past month, leading the Business Services sector's loss of 6.05% and undershooting the S&P 500's loss of 1.66%.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company's upcoming EPS is projected at $3.09, signifying a 11.96% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $10.7 billion, reflecting a 11.51% rise from the equivalent quarter last year.
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.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Visa currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 23.57. This indicates a premium in contrast to its industry's Forward P/E of 11.29.
Meanwhile, V's PEG ratio is currently 1.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. V's industry had an average PEG ratio of 0.81 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.