Visa (V) Advances While Market Declines: Some Information for Investors
In the latest trading session, Visa (V) closed at $285.63, marking a +0.87% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.55%.
The global payments processor's shares have seen an increase of 2.17% over the last month, not keeping up with the Business Services sector's gain of 8.26% and the S&P 500's gain of 3.98%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.42, marking a 15.79% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.6 billion, up 7.7% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.90 per share and revenue of $35.7 billion, indicating changes of +12.88% and +9.35%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Visa is currently a Zacks Rank #3 (Hold).
In terms of valuation, Visa is presently being traded at a Forward P/E ratio of 28.59. For comparison, its industry has an average Forward P/E of 13.65, which means Visa is trading at a premium to the group.
Investors should also note that V has a PEG ratio of 1.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.15.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Visa Inc. (V) : Free Stock Analysis Report
