Visa (V) ended the recent trading session at $339.12, demonstrating a -1.42% change from the preceding day's closing price. This change lagged the S&P 500's 0.3% gain on the day. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%.
Coming into today, shares of the global payments processor had gained 2.15% in the past month. In that same time, the Business Services sector gained 2.34%, while the S&P 500 gained 2.09%.
The upcoming earnings release of Visa will be of great interest to investors. The company is forecasted to report an EPS of $2.96, showcasing a 9.23% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.59 billion, up 10.14% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.43 per share and revenue of $39.84 billion. These totals would mark changes of +13.73% and +10.89%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Visa boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Visa is currently being traded at a Forward P/E ratio of 30.11. For comparison, its industry has an average Forward P/E of 15.17, which means Visa is trading at a premium to the group.
It's also important to note that V currently trades at a PEG ratio of 2.29. 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. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.26.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Visa Inc. (V): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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