Visa (V) Gains But Lags Market: What You Should Know

Visa (V) closed the most recent trading day at $215.41, moving +1.85% from the previous trading session. This change lagged the S&P 500's 1.95% gain on the day. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 1.55%.

Prior to today's trading, shares of the global payments processor had gained 1.08% over the past month. This has outpaced the Business Services sector's loss of 1.09% and the S&P 500's loss of 2.45% 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 $1.27, down 8.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.56 billion, down 5% from the year-ago period.

V's full-year Zacks Consensus Estimates are calling for earnings of $5.49 per share and revenue of $23.28 billion. These results would represent year-over-year changes of +8.93% and +6.56%, respectively.

Investors should also note any recent changes to analyst estimates for V. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.04% higher within the past month. V is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that V has a Forward P/E ratio of 38.54 right now. This represents a premium compared to its industry's average Forward P/E of 23.43.

Investors should also note that V has a PEG ratio of 2.26 right now. 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. The Financial Transaction Services was holding an average PEG ratio of 1.95 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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