In the latest trading session, Visa (V) closed at $331.24, marking a +1.27% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.31%.
Prior to today's trading, shares of the global payments processor had lost 2.93% lagged the Business Services sector's loss of 0.83% and the S&P 500's gain of 1.33%.
The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company is forecasted to report an EPS of $3.14, showcasing a 14.18% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.68 billion, up 12.28% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.81 per share and a revenue of $44.4 billion, signifying shifts of +11.68% and +10.99%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Visa. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Visa is currently being traded at a Forward P/E ratio of 25.54. This signifies a premium in comparison to the average Forward P/E of 13.98 for its industry.
Meanwhile, V's PEG ratio is currently 1.94. 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. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.03.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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