Visa (V) closed at $142.48 in the latest trading session, marking a +0.52% move from the prior day. This move outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Heading into today, shares of the global payments processor had lost 3.99% over the past month, outpacing the Business Services sector's loss of 5.68% and lagging the S&P 500's loss of 3.08% in that time.
V will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2018. On that day, V is projected to report earnings of $1.20 per share, which would represent year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.42 billion, up 11.61% from the year-ago period.
Any recent changes to analyst estimates for V should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. V is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note V's current valuation metrics, including its Forward P/E ratio of 26.64. This represents a premium compared to its industry's average Forward P/E of 21.54.
It is also worth noting that V currently has a PEG ratio of 1.52. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.54 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 101, which puts it in the top 40% 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.