In the latest trading session, Visa (V - Free Report) closed at $145.26, marking a -0.17% move from the previous day. The stock lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the global payments processor had gained 6.54% over the past month, outpacing the Business Services sector's gain of 4.26% and the S&P 500's gain of 2.98% in that time.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. This is expected to be October 24, 2018. On that day, V is projected to report earnings of $1.20 per share, which would represent year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $5.42 billion, up 11.56% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.57 per share and revenue of $20.59 billion, which would represent changes of +31.32% and +12.16%, respectively, from the prior year.
Any recent changes to analyst estimates for V should also be noted by investors. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.66% higher within the past month. V is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that V has a Forward P/E ratio of 31.81 right now. Its industry sports an average Forward P/E of 22.29, so we one might conclude that V is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services was holding an average PEG ratio of 1.73 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.