Visa (V) closed the most recent trading day at $141.10, moving +1.77% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.42%.
Prior to today's trading, shares of the global payments processor had lost 4.24% over the past month. This has lagged the Business Services sector's loss of 0.94% and the S&P 500's loss of 1.1% in that time.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. This is expected to be February 7, 2019. In that report, analysts expect V to post earnings of $1.24 per share. This would mark year-over-year growth of 14.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.40 billion, up 11.02% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $5.33 per share and revenue of $22.84 billion. These results would represent year-over-year changes of +15.62% and +10.83%, respectively.
Investors might also notice recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-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 0.06% higher. V currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, V is holding a Forward P/E ratio of 26.03. This represents a premium compared to its industry's average Forward P/E of 19.31.
It is also worth noting that V currently has a PEG ratio of 1.51. 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 1.36 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% 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.
To follow V in the coming trading sessions, be sure to utilize Zacks.com.