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Visa (V) Flat As Market Sinks: What You Should Know
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Visa (V - Free Report) closed the most recent trading day at $139.72, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq 0%.
Heading into today, shares of the global payments processor had gained 1.81% over the past month, outpacing the Business Services sector's loss of 1.59% and the S&P 500's loss of 1.27% in that time.
V will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $1.24, up 14.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.40 billion, up 11.02% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $22.84 billion. These results would represent year-over-year changes of +15.4% and +10.83%, 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.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. 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 26.25 right now. For comparison, its industry has an average Forward P/E of 20.19, which means V is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.52 right now. 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 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 group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Visa (V) Flat As Market Sinks: What You Should Know
Visa (V - Free Report) closed the most recent trading day at $139.72, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq 0%.
Heading into today, shares of the global payments processor had gained 1.81% over the past month, outpacing the Business Services sector's loss of 1.59% and the S&P 500's loss of 1.27% in that time.
V will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $1.24, up 14.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.40 billion, up 11.02% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $22.84 billion. These results would represent year-over-year changes of +15.4% and +10.83%, 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.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. 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 26.25 right now. For comparison, its industry has an average Forward P/E of 20.19, which means V is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.52 right now. 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 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 group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.