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Visa (V) Increases Despite Market Slip: Here's What You Need to Know
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Visa (V - Free Report) ended the recent trading session at $375.28, demonstrating a +1.3% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the global payments processor witnessed a gain of 1.73% over the previous month, beating the performance of the Business Services sector with its loss of 2.87%, and the S&P 500's loss of 0.82%.
Market participants will be closely following the financial results of Visa in its upcoming release. The company's earnings per share (EPS) are projected to be $3.43, reflecting a 15.1% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.07 billion, indicating a 12.56% upward movement from the same quarter last 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. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Visa currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.15. This denotes a premium relative to the industry average Forward P/E of 13.14.
It is also worth noting that V currently has a PEG ratio of 1.98. 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. The average PEG ratio for the Financial Transaction Services industry stood at 0.86 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% 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) Increases Despite Market Slip: Here's What You Need to Know
Visa (V - Free Report) ended the recent trading session at $375.28, demonstrating a +1.3% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the global payments processor witnessed a gain of 1.73% over the previous month, beating the performance of the Business Services sector with its loss of 2.87%, and the S&P 500's loss of 0.82%.
Market participants will be closely following the financial results of Visa in its upcoming release. The company's earnings per share (EPS) are projected to be $3.43, reflecting a 15.1% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.07 billion, indicating a 12.56% upward movement from the same quarter last 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. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Visa currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.15. This denotes a premium relative to the industry average Forward P/E of 13.14.
It is also worth noting that V currently has a PEG ratio of 1.98. 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. The average PEG ratio for the Financial Transaction Services industry stood at 0.86 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% 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.