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Is Visa (V) Stock Outpacing Its Business Services Peers This Year?

Zacks Equity Research

Investors focused on the Business Services space have likely heard of Visa (V), but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.

Visa is a member of the Business Services sector. This group includes 194 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. V is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for V's full-year earnings has moved 0.45% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, V has moved about 31.51% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 24.60% on a year-to-date basis. As we can see, Visa is performing better than its sector in the calendar year.

Looking more specifically, V belongs to the Financial Transaction Services industry, which includes 24 individual stocks and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have gained 36.88% this year, meaning that V is slightly underperforming its industry in terms of year-to-date returns.

V will likely be looking to continue its solid performance, so investors interested in Business Services stocks should continue to pay close attention to the company.


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