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Visa (V) Gains But Lags Market: What You Should Know

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Visa (V - Free Report) closed at $135.96 in the latest trading session, marking a +0.01% move from the prior day. This change lagged the S&P 500's 0.33% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.01%.

Heading into today, shares of the global payments processor had gained 1.2% over the past month, outpacing the Business Services sector's gain of 0.12% and the S&P 500's gain of 0.89% 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. In that report, analysts expect V to post earnings of $1.24 per share. This would mark year-over-year growth of 14.81%. Meanwhile, our latest consensus estimate is calling for revenue of $5.40 billion, up 11.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.32 per share and revenue of $22.84 billion, which would represent changes of +15.4% and +10.83%, respectively, from the prior year.

Any recent changes to analyst estimates for V should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 0.13% lower 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 25.57 right now. This represents a premium compared to its industry's average Forward P/E of 18.91.

Investors should also note that V has a PEG ratio of 1.48 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. V's industry had an average PEG ratio of 1.41 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 26, which puts it in the top 10% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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