Visa (V) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Visa (V) closed at $234.08, marking a -0.37% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day.
Heading into today, shares of the global payments processor had gained 3.53% over the past month, lagging the Business Services sector's gain of 3.6% and outpacing the S&P 500's gain of 2.43% in that time.
V will be looking to display strength as it nears its next earnings release. On that day, V is projected to report earnings of $1.32 per share, which would represent year-over-year growth of 24.53%. Meanwhile, our latest consensus estimate is calling for revenue of $5.79 billion, up 19.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.59 per share and revenue of $23.43 billion, which would represent changes of +10.91% and +7.24%, respectively, from the prior year.
Any recent changes to analyst estimates for V should also be noted by investors. Recent revisions tend to reflect the latest 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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. V currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that V has a Forward P/E ratio of 42.06 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.93.
Investors should also note that V has a PEG ratio of 2.25 right now. 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 1.32 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 184, putting it in the bottom 28% 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.
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