Back to top

Image: Bigstock

Visa (V) Beats Stock Market Upswing: What Investors Need to Know

Read MoreHide Full Article

Visa (V - Free Report) ended the recent trading session at $385.45, demonstrating a +2.76% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.6%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.64%.

The global payments processor's shares have seen an increase of 2.15% over the last month, surpassing the Business Services sector's loss of 2.9% and the S&P 500's gain of 1.34%.

The upcoming earnings release of Visa will be of great interest to investors. The company's earnings report is expected on October 27, 2026. The company is expected to report EPS of $3.43, up 15.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.07 billion, up 12.59% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.22 per share and a revenue of $45.83 billion, representing changes of +15.26% and +14.58%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0% upward. At present, Visa boasts a Zacks Rank of #2 (Buy).

Looking at valuation, Visa is presently trading at a Forward P/E ratio of 25.04. This represents a premium compared to its industry average Forward P/E of 14.68.

Also, we should mention that V has a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.78 based on yesterday's closing prices.

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 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Published in