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Visa (V) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest trading session, Visa (V - Free Report) closed at $369.08, marking a -1.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
The stock of global payments processor has risen by 3.81% in the past month, leading the Business Services sector's loss of 1.01% and the S&P 500's loss of 0.36%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.43, marking a 15.1% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.07 billion, indicating a 12.56% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.16 per share and revenue of $45.83 billion, which would represent changes of +14.73% and +14.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Right now, Visa possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Visa is currently being traded at a Forward P/E ratio of 28.5. This denotes a premium relative to the industry average Forward P/E of 13.56.
One should further note that V currently holds a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.87.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 184, finds itself in the bottom 26% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Visa (V) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, Visa (V - Free Report) closed at $369.08, marking a -1.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
The stock of global payments processor has risen by 3.81% in the past month, leading the Business Services sector's loss of 1.01% and the S&P 500's loss of 0.36%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.43, marking a 15.1% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.07 billion, indicating a 12.56% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.16 per share and revenue of $45.83 billion, which would represent changes of +14.73% and +14.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Right now, Visa possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Visa is currently being traded at a Forward P/E ratio of 28.5. This denotes a premium relative to the industry average Forward P/E of 13.56.
One should further note that V currently holds a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.87.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 184, finds itself in the bottom 26% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.