In the latest trading session, Visa (V - Free Report) closed at $133.73, marking a -1.32% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.06%. Meanwhile, the Dow lost 2.13%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Heading into today, shares of the global payments processor had lost 7.54% over the past month, lagging the Business Services sector's loss of 7.22% and the S&P 500's loss of 3.01% 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. On that day, V is projected to report earnings of $1.20 per share, which would represent year-over-year growth of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.42 billion, up 11.61% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. V currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, V is holding a Forward P/E ratio of 25.47. This valuation marks a premium compared to its industry's average Forward P/E of 20.87.
It is also worth noting that V currently has a PEG ratio of 1.45. 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 1.48 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 144, which puts it in the bottom 44% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.