Visa (V) closed at $198.64 in the latest trading session, marking a +0.44% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%.
Heading into today, shares of the global payments processor had lost 7.29% over the past month, outpacing the Business Services sector's loss of 12.1% and lagging the S&P 500's loss of 5.13% in that time.
Visa will be looking to display strength as it nears its next earnings release. On that day, Visa is projected to report earnings of $1.87 per share, which would represent year-over-year growth of 15.43%. Meanwhile, our latest consensus estimate is calling for revenue of $7.58 billion, up 15.63% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.41 per share and revenue of $29.08 billion. These totals would mark changes of +25.38% and +20.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business 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.
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 0.41% higher. Visa currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Visa has a Forward P/E ratio of 26.69 right now. This represents a premium compared to its industry's average Forward P/E of 15.83.
Meanwhile, V's PEG ratio is currently 1.6. 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 1.02 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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