In the latest trading session, Visa (V) closed at $334.27, marking a +0.87% move from the previous day. This change lagged the S&P 500's 1.67% gain on the day. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Coming into today, shares of the global payments processor had lost 3.84% in the past month. In that same time, the Business Services sector lost 4.31%, while the S&P 500 lost 6.57%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 29, 2025. The company is predicted to post an EPS of $2.68, indicating a 6.77% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.56 billion, indicating an 8.96% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.30 per share and revenue of $39.6 billion. These totals would mark changes of +12.44% and +10.23%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. Visa presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 29.33. For comparison, its industry has an average Forward P/E of 14.18, which means Visa is trading at a premium to the group.
One should further note that V currently holds a PEG ratio of 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 36% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Visa Inc. (V): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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