Visa (V) closed at $360.06 in the latest trading session, marking a +0.21% move from the prior day. This change outpaced the S&P 500's 0.56% loss on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.51%.
Prior to today's trading, shares of the global payments processor had gained 5.21% over the past month. This has lagged the Business Services sector's gain of 7.46% and the S&P 500's gain of 7.37% in that time.
The upcoming earnings release of Visa will be of great interest to investors. The company is forecasted to report an EPS of $2.84, showcasing a 17.36% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $9.85 billion, up 10.7% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $11.35 per share and revenue of $39.61 billion. These results would represent year-over-year changes of +12.94% and +10.26%, respectively.
Investors should also note any recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. 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 31.65. This denotes a premium relative to the industry's average Forward P/E of 15.21.
It is also worth noting that V currently has a PEG ratio of 2.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Financial Transaction Services industry stood at 1.18 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons of all 250+ industries.
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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