Visa (V) closed the latest trading day at $370.70, indicating a +1.1% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.
Shares of the global payments processor have appreciated by 3.04% over the course of the past month, outperforming the Business Services sector's gain of 2.47% and lagging the S&P 500's gain of 6.29%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. 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 $9.84 billion, up 10.62% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $11.35 per share and revenue of $39.6 billion. These results would represent year-over-year changes of +12.94% and +10.22%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Visa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 32.32. This valuation marks a premium compared to its industry's average Forward P/E of 15.71.
One should further note that V currently holds a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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