Visa (V - Free Report) closed at $149.34 in the latest trading session, marking a -0.17% move from the prior day. This move outpaced the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.21%.
Prior to today's trading, shares of the global payments processor had gained 3.02% over the past month. This has outpaced the Business Services sector's gain of 1.95% and the S&P 500's gain of 1.6% in that time.
Investors will be hoping for strength from V as it approaches 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%. Meanwhile, our latest consensus estimate is calling for revenue of $5.42 billion, up 11.57% from the prior-year quarter.
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 +12.17%, respectively.
It is also important to note the recent changes to analyst estimates for V. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.31% higher within the past month. V is currently a Zacks Rank #2 (Buy).
In terms of valuation, V is currently trading at a Forward P/E ratio of 32.48. This represents a premium compared to its industry's average Forward P/E of 22.52.
Investors should also note that V has a PEG ratio of 1.85 right now. 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 1.68 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 69, putting it in the top 27% 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.