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Visa (V) Outperforms Broader Market: What You Need to Know

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Visa (V - Free Report) closed the most recent trading day at $399.87, moving +2.16% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.

The stock of global payments processor has risen by 5.53% in the past month, leading the Business Services sector's loss of 1.1% and the S&P 500's gain of 1.41%.

The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2026. 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. Alongside, our most recent consensus estimate is anticipating revenue of $12.08 billion, indicating a 12.61% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.22 per share and a revenue of $45.84 billion, signifying shifts of +15.26% and +14.59%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Visa possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Visa currently has a Forward P/E ratio of 26.13. This denotes a premium relative to the industry average Forward P/E of 14.32.

We can also see that V currently has a PEG ratio of 1.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services industry currently had an average PEG ratio of 0.78 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 178, placing it within the bottom 28% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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