Visa (V) closed at $187.08 in the latest trading session, marking a -0.49% move from the prior day. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 0.23%.
Heading into today, shares of the global payments processor had gained 4.51% over the past month, outpacing the Business Services sector's gain of 3.32% and the S&P 500's gain of 3.81% in that time.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. The company is expected to report EPS of $1.47, up 13.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Investors might also notice recent changes to analyst estimates for V. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.09% lower within the past month. V is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, V currently has a Forward P/E ratio of 30.28. For comparison, its industry has an average Forward P/E of 24.71, which means V is trading at a premium to the group.
Meanwhile, V's PEG ratio is currently 1.95. 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. V's industry 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 industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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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