Yahoo Finance Visa (V) Rises Higher Than Market: Key Facts
In the latest market close, Visa (V) reached $272.42, with a +0.75% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.15%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.17%.
Prior to today's trading, shares of the global payments processor had lost 0.84% over the past month. This has lagged the Business Services sector's gain of 0.12% and the S&P 500's gain of 3.2% in that time.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.41, reflecting a 11.57% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.91 billion, indicating a 9.65% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.94 per share and revenue of $35.86 billion, indicating changes of +13.34% and +9.82%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Visa. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Visa boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 27.21. This denotes a premium relative to the industry's average Forward P/E of 14.47.
Investors should also note that V has a PEG ratio of 1.85 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.96.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 55, positioning it in the top 22% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
Visa Inc. (V) : Free Stock Analysis Report
