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Visa (V) Ascends But Remains Behind Market: Some Facts to Note

Visa (V) closed at $271.17 in the latest trading session, marking a +0.19% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.77%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.95%.

The global payments processor's shares have seen a decrease of 3.37% over the last month, not keeping up with the Business Services sector's loss of 0.77% and the S&P 500's gain of 3.71%.

The upcoming earnings release of Visa will be of great interest to investors. On that day, Visa is projected to report earnings of $2.41 per share, which would represent year-over-year growth of 11.57%. In the meantime, our current consensus estimate forecasts the revenue to be $8.91 billion, indicating a 9.67% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.94 per share and revenue of $35.86 billion, which would represent changes of +13.34% and +9.81%, respectively, from the prior year.

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Investors should also pay attention to any latest changes in analyst estimates for Visa. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. Visa is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Visa is at present trading with a Forward P/E ratio of 27.24. This indicates a premium in contrast to its industry's Forward P/E of 14.26.

Also, we should mention that V has a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.95.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

To follow V in the coming trading sessions, be sure to utilize Zacks.com.

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Visa Inc. (V) : Free Stock Analysis Report

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