Visa (V) closed the most recent trading day at $338.89, moving -1.59% from the previous trading session. This move lagged the S&P 500's daily loss of 0.55%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.95%.
The stock of global payments processor has fallen by 1.28% in the past month, lagging the Business Services sector's gain of 0.72% and the S&P 500's gain of 3.64%.
The upcoming earnings release of Visa will be of great interest to investors. The company is expected to report EPS of $2.96, up 9.23% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.59 billion, reflecting a 10.14% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.43 per share and a revenue of $39.84 billion, indicating changes of +13.73% and +10.89%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, Visa boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is presently being traded at a Forward P/E ratio of 30.13. This denotes a premium relative to the industry average Forward P/E of 15.84.
Investors should also note that V has a PEG ratio of 2.29 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.2.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 26% 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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