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Visa (V) Gains As Market Dips: What You Should Know

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Visa (V) closed the most recent trading day at $205.06, moving +0.73% from the previous trading session. This change outpaced the S&P 500's 1.15% loss on the day. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the global payments processor had gained 2.04% in the past month. In that same time, the Business Services sector lost 5.8%, while the S&P 500 lost 5.08%.

Investors will be hoping for strength from Visa as it approaches its next earnings release, which is expected to be July 26, 2022. On that day, Visa is projected to report earnings of $1.74 per share, which would represent year-over-year growth of 16.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.05 billion, up 14.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $28.64 billion, which would represent changes of +21.15% and +18.81%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Visa is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 28.41 right now. This represents a premium compared to its industry's average Forward P/E of 14.2.

Also, we should mention that V has a PEG ratio of 1.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services industry currently had an average PEG ratio of 1.01 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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