In the latest trading session, Visa (V - Free Report) closed at $195.33, marking a +0.81% move from the previous day. This change outpaced the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 1.04%.
Heading into today, shares of the global payments processor had gained 6.09% over the past month, outpacing the Business Services sector's gain of 3.24% and the S&P 500's gain of 4.38% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release. The company is expected to report EPS of $1.47, up 13.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.07 billion, up 10.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.20 per share and revenue of $25.47 billion. These totals would mark changes of +13.97% and +10.83%, respectively, from last year.
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 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. 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 0.07% lower within the past month. V is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that V has a Forward P/E ratio of 31.24 right now. Its industry sports an average Forward P/E of 21.61, so we one might conclude that V is trading at a premium comparatively.
Investors should also note that V has a PEG ratio of 2.01 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. V's industry had an average PEG ratio of 1.71 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 80, putting it in the top 32% 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.