Visa (V) ended the recent trading session at $352.23, demonstrating a -1.03% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
Heading into today, shares of the global payments processor had gained 9.26% over the past month, outpacing the Business Services sector's gain of 2.02% and the S&P 500's gain of 0.86%.
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 $3.14, marking a 14.18% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.68 billion, indicating a 12.32% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.81 per share and revenue of $44.45 billion, which would represent changes of +11.68% and +11.12%, respectively, from the prior 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 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Visa presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 27.78. This denotes a premium relative to the industry average Forward P/E of 12.92.
One should further note that V currently holds a PEG ratio of 2.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.95.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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