Visa (V) closed at $160.33 in the latest trading session, marking a +0.43% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the global payments processor had gained 3.53% over the past month. This has lagged the Business Services sector's gain of 5.35% and the S&P 500's gain of 4.3% in that time.
V will be looking to display strength as it nears its next earnings release, which is expected to be April 24, 2019. The company is expected to report EPS of $1.24, up 11.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.45 billion, up 7.5% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $22.76 billion. These results would represent year-over-year changes of +15.4% and +10.41%, respectively.
It is also important to note the recent changes to analyst estimates for V. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.08% higher within the past month. V is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, V is currently trading at a Forward P/E ratio of 29.99. For comparison, its industry has an average Forward P/E of 21.86, which means V is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.82. 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. The Financial Transaction Services was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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