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Visa (V) closed at $193.82 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the global payments processor had lost 4.07% over the past month, outpacing the Business Services sector's loss of 4.92% and lagging the S&P 500's loss of 3.32% in that time.
Visa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Visa to post earnings of $1.73 per share. This would mark year-over-year growth of 16.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.03 billion, up 14.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $28.61 billion, which would represent changes of +21.15% and +18.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 0.13% higher. Visa is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 27.16. This represents a premium compared to its industry's average Forward P/E of 13.58.
Investors should also note that V has a PEG ratio of 1.65 right now. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% 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.