Why Visa (V) Dipped More Than Broader Market Today
In the latest market close, Visa (V) reached $281.21, with a -0.72% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Shares of the global payments processor witnessed a loss of 0.12% over the previous month, trailing the performance of the Business Services sector with its gain of 1.81% and the S&P 500's gain of 3.05%.
The upcoming earnings release of Visa will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.43, reflecting a 16.27% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.6 billion, up 7.65% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and a revenue of $35.69 billion, representing changes of +12.88% and +9.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Visa. Such recent modifications usually signify the changing landscape 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Visa is presently trading at a Forward P/E ratio of 28.62. This represents a premium compared to its industry's average Forward P/E of 14.44.
It is also worth noting that V currently has a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Visa Inc. (V) : Free Stock Analysis Report
