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Visa (V) Outpaces Stock Market Gains: What You Should Know

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Visa (V - Free Report) closed at $136.20 in the latest trading session, marking a +1.91% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 1.26%.

Prior to today's trading, shares of the global payments processor had lost 5.25% over the past month. This has was narrower than the Business Services sector's loss of 6.19% and the S&P 500's loss of 6.13% in that time.

Wall Street will be looking for positivity from V as it approaches its next earnings report date. This is expected to be February 7, 2019. On that day, V is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 15.74%. Meanwhile, our latest consensus estimate is calling for revenue of $5.40 billion, up 11.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.33 per share and revenue of $22.83 billion, which would represent changes of +15.62% and +10.77%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for V. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.01% 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 25.08 right now. This represents a premium compared to its industry's average Forward P/E of 16.69.

We can also see 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 1.28 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 96, which puts it in the top 38% 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.




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