In the latest trading session, Visa (V - Free Report) closed at $145.49, marking a +0.98% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.61%.
Prior to today's trading, shares of the global payments processor had gained 2.76% over the past month. This has lagged the Business Services sector's gain of 3.35% and outpaced the S&P 500's gain of 1.82% in that time.
V will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2018. In that report, analysts expect V to post earnings of $1.20 per share. This would mark 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.
V's full-year Zacks Consensus Estimates are calling for earnings of $4.61 per share and revenue of $20.59 billion. These results would represent year-over-year changes of +32.47% and +12.16%, respectively.
It is also important to note the recent changes to analyst estimates for V. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. V is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that V has a Forward P/E ratio of 31.29 right now. Its industry sports an average Forward P/E of 22.77, so we one might conclude that V is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.78. 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 Financial Transaction Services industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.