Visa (V) Gains But Lags Market: What You Should Know
Visa (V) closed at $169.75 in the latest trading session, marking a +0.05% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.62%.
Prior to today's trading, shares of the global payments processor had gained 2.91% over the past month. This has lagged the Business Services sector's gain of 5.43% and outpaced the S&P 500's gain of 2.08% in that time.
V will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.33, up 10.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.70 billion, up 8.78% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $5.38 per share and revenue of $22.75 billion. These results would represent year-over-year changes of +16.7% and +10.4%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. V is currently a Zacks Rank #2 (Buy).
In terms of valuation, V is currently trading at a Forward P/E ratio of 31.55. This represents a premium compared to its industry's average Forward P/E of 23.2.
Also, we should mention that V has a PEG ratio of 1.92. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.92 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 38, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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