Visa (V) closed at $353.85 in the latest trading session, marking a +1.5% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.52%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.48%.
The stock of global payments processor has fallen by 4.54% in the past month, lagging the Business Services sector's loss of 1.89% and the S&P 500's gain of 4.27%.
The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company is predicted to post an EPS of $2.84, indicating a 17.36% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.84 billion, reflecting a 10.6% rise from the equivalent quarter last year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is currently trading at a Forward P/E ratio of 30.71. This denotes a premium relative to the industry average Forward P/E of 16.22.
We can also see that V currently has a PEG ratio of 2.34. 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 Financial Transaction Services industry had an average PEG ratio of 1.26 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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