Visa (V) Gains As Market Dips: What You Should Know
In the latest trading session, Visa (V) closed at $225.11, marking a +0.41% move from the previous day.
Visa (V) closed the most recent trading day at $225.11, moving +0.41% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.03%.
Prior to today's trading, shares of the global payments processor had lost 6.67% over the past month. This has lagged the Business Services sector's gain of 1.35% and the S&P 500's gain of 3.59% in that time.
V will be looking to display strength as it nears its next earnings release. In that report, analysts expect V to post earnings of $1.52 per share. This would mark year-over-year growth of 35.71%. Our most recent consensus estimate is calling for quarterly revenue of $6.45 billion, up 26.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.78 per share and revenue of $23.96 billion, which would represent changes of +14.68% and +9.7%, respectively, from the prior year.
Any recent changes to analyst estimates for V should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 remained stagnant within the past month. V currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, V is holding a Forward P/E ratio of 38.8. This valuation marks a premium compared to its industry's average Forward P/E of 22.55.
It is also worth noting that V currently has a PEG ratio of 2.01. 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 1.35 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
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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