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Is Visa (V) Stock Outpacing Its Business Services Peers This Year?

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For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Visa (V - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of V and the rest of the Business Services group's stocks.

Visa is a member of our Business Services group, which includes 193 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. V is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for V's full-year earnings has moved 0.70% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, V has gained about 34.05% so far this year. Meanwhile, stocks in the Business Services group have gained about 31.16% on average. This means that Visa is outperforming the sector as a whole this year.

Looking more specifically, V belongs to the Financial Transaction Services industry, a group that includes 25 individual stocks and currently sits at #59 in the Zacks Industry Rank. On average, this group has gained an average of 39.84% so far this year, meaning that V is slightly underperforming its industry in terms of year-to-date returns.

V will likely be looking to continue its solid performance, so investors interested in Business Services stocks should continue to pay close attention to the company.


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