Visa (V) closed at $351.63 in the latest trading session, marking a +2.29% move from the prior day. This move outpaced the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 1.43%.
Shares of the global payments processor witnessed a loss of 2.77% over the previous month, trailing the performance of the Business Services sector with its loss of 1.02%, and the S&P 500's gain of 3.92%.
The upcoming earnings release of Visa will be of great interest to investors. The company is expected to report EPS of $2.84, up 17.36% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $9.84 billion, indicating a 10.6% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.35 per share and revenue of $39.6 billion, indicating changes of +12.94% and +10.22%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Visa is currently a Zacks Rank #3 (Hold).
Digging into valuation, Visa currently has a Forward P/E ratio of 30.28. This indicates a premium in contrast to its industry's Forward P/E of 15.91.
It's also important to note that V currently trades at a PEG ratio of 2.31. 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. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.27.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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