Visa (V) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Visa (V) closed at $196.97, marking a -1.64% move from the previous day. This change lagged the S&P 500's 1.63% loss on the day. Meanwhile, the Dow lost 1.44%, and the Nasdaq, a tech-heavy index, lost 1.65%.
Heading into today, shares of the global payments processor had lost 2.44% over the past month, outpacing the Business Services sector's loss of 10.13% and lagging the S&P 500's gain of 2.86% in that time.
V will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2020. In that report, analysts expect V to post earnings of $1.09 per share. This would mark a year-over-year decline of 25.85%. Our most recent consensus estimate is calling for quarterly revenue of $5.02 billion, down 18.2% from the year-ago period.
It is also important to note the recent changes to analyst estimates for V. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. V is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note V's current valuation metrics, including its Forward P/E ratio of 34.49. This valuation marks a premium compared to its industry's average Forward P/E of 27.1.
Investors should also note that V has a PEG ratio of 2.63 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. V's industry had an average PEG ratio of 1.51 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.