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Visa (V) Declines More Than Market: Some Information for Investors

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In the latest close session, Visa (V - Free Report) was down 1.33% at $347.53. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Heading into today, shares of the global payments processor had gained 8.35% over the past month, outpacing the Business Services sector's gain of 3.35% and the S&P 500's gain of 1.64%.

The upcoming earnings release of Visa will be of great interest to investors. The company's earnings report is expected on July 28, 2026. In that report, analysts expect Visa to post earnings of $3.22 per share. This would mark year-over-year growth of 8.05%. Meanwhile, our latest consensus estimate is calling for revenue of $11.35 billion, up 11.62% from the prior-year quarter.

V's full-year Zacks Consensus Estimates are calling for earnings of $13.1 per share and revenue of $45.37 billion. These results would represent year-over-year changes of +14.21% and +13.42%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Visa. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Visa holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 26.89. This expresses a premium compared to the average Forward P/E of 11.37 of its industry.

One should further note that V currently holds a PEG ratio of 1.88. 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 the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.83.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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