In the latest trading session, Visa (V) closed at $185.52, marking a -0.39% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.1%.
Prior to today's trading, shares of the global payments processor had gained 3.66% over the past month. This has outpaced the Business Services sector's gain of 2.8% and the S&P 500's gain of 1.82% in that time.
Investors will be hoping for strength from V as it approaches its next earnings release. The company is expected to report EPS of $1.46, up 12.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.06 billion, up 10% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $6.21 per share and revenue of $25.47 billion. These results would represent year-over-year changes of +14.15% and +10.84%, respectively.
It is also important to note the recent changes to analyst estimates for V. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.14% lower within the past month. V is currently a Zacks Rank #3 (Hold).
In terms of valuation, V is currently trading at a Forward P/E ratio of 30.01. For comparison, its industry has an average Forward P/E of 24.78, which means V is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.95. 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 1.78 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 51, putting it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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