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Visa (V) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Visa (V - Free Report) closed at $194.20, marking a -1.8% move from the previous day. This change lagged the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 0.86%.
Prior to today's trading, shares of the global payments processor had lost 0.92% over the past month. This has was narrower than the Business Services sector's loss of 1.26% and lagged the S&P 500's loss of 0.3% in that time.
V will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, down 26.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.78 billion, down 18.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5 per share and revenue of $21.88 billion. These totals would mark changes of -8.09% and -4.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for V. Recent revisions tend to reflect the latest near-term business trends. 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 0.14% higher within the past month. V is currently a Zacks Rank #3 (Hold).
Looking at its valuation, V is holding a Forward P/E ratio of 39.58. This valuation marks a premium compared to its industry's average Forward P/E of 27.41.
Meanwhile, V's PEG ratio is currently 3.14. 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 was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Visa (V) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Visa (V - Free Report) closed at $194.20, marking a -1.8% move from the previous day. This change lagged the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 0.86%.
Prior to today's trading, shares of the global payments processor had lost 0.92% over the past month. This has was narrower than the Business Services sector's loss of 1.26% and lagged the S&P 500's loss of 0.3% in that time.
V will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, down 26.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.78 billion, down 18.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5 per share and revenue of $21.88 billion. These totals would mark changes of -8.09% and -4.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for V. Recent revisions tend to reflect the latest near-term business trends. 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 0.14% higher within the past month. V is currently a Zacks Rank #3 (Hold).
Looking at its valuation, V is holding a Forward P/E ratio of 39.58. This valuation marks a premium compared to its industry's average Forward P/E of 27.41.
Meanwhile, V's PEG ratio is currently 3.14. 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 was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.