Visa (V) closed the most recent trading day at $346.20, moving +1.81% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow saw an upswing of 0.57%, while the tech-heavy Nasdaq depreciated by 0.33%.
Shares of the global payments processor witnessed a loss of 0.71% over the previous month, trailing the performance of the Business Services sector with its gain of 1.53%, and the S&P 500's gain of 2.57%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.96, marking a 9.23% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $10.59 billion, indicating a 10.14% upward movement from the same quarter last year.
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 should also take note of any recent adjustments to analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. As of now, Visa holds a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 29.75. Its industry sports an average Forward P/E of 15.97, so one might conclude that Visa is trading at a premium comparatively.
Investors should also note that V has a PEG ratio of 2.26 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. V's industry had an average PEG ratio of 1.24 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 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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