In the latest close session, Visa (V) was down 1.31% at $346.77. The stock trailed the S&P 500, which registered a daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.52%, while the tech-heavy Nasdaq depreciated by 0.08%.
Prior to today's trading, shares of the global payments processor had gained 3.92% outpaced the Business Services sector's loss of 0.31% and lagged the S&P 500's gain of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2025. The company is predicted to post an EPS of $2.96, indicating a 9.23% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.59 billion, showing a 10.14% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.43 per share and a revenue of $39.84 billion, representing changes of +13.73% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Visa currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Visa is presently trading at a Forward P/E ratio of 27.36. This indicates a premium in contrast to its industry's Forward P/E of 14.77.
Meanwhile, V's PEG ratio is currently 2.08. 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. The average PEG ratio for the Financial Transaction Services industry stood at 1.23 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 39, this industry ranks in the top 16% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Visa Inc. (V): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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