Visa (V) closed the most recent trading day at $217.66, moving +0.3% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.12%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.05%.
Heading into today, shares of the global payments processor had gained 11.43% over the past month, outpacing the Business Services sector's gain of 5.39% and the S&P 500's gain of 5.93% in that time.
Wall Street will be looking for positivity from Visa as it approaches its next earnings report date. In that report, analysts expect Visa to post earnings of $2 per share. This would mark year-over-year growth of 10.5%. Our most recent consensus estimate is calling for quarterly revenue of $7.68 billion, up 8.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.30 per share and revenue of $31.9 billion, which would represent changes of +10.67% and +8.82%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Visa. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. Visa is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Visa is holding a Forward P/E ratio of 26.14. This valuation marks a premium compared to its industry's average Forward P/E of 16.22.
Also, we should mention that V has a PEG ratio of 1.74. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report