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Visa (V) Increases Yet Falls Behind Market: What Investors Need to Know
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Visa (V - Free Report) closed the latest trading day at $317.91, indicating a +0.06% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.98%.
Prior to today's trading, shares of the global payments processor had gained 2.51% over the past month. This has outpaced the Business Services sector's gain of 0.33% and the S&P 500's gain of 0.34% in that time.
Market participants will be closely following the financial results of Visa in its upcoming release. The company's earnings per share (EPS) are projected to be $2.66, reflecting a 10.37% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.35 billion, indicating an 8.27% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.22 per share and a revenue of $39.37 billion, indicating changes of +11.64% and +9.6%, respectively, from the former year.
Any recent changes to analyst estimates for Visa 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Visa is currently a Zacks Rank #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 28.31. This valuation marks a premium compared to its industry's average Forward P/E of 15.54.
One should further note that V currently holds a PEG ratio of 2.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. V's industry had an average PEG ratio of 1.26 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Visa (V) Increases Yet Falls Behind Market: What Investors Need to Know
Visa (V - Free Report) closed the latest trading day at $317.91, indicating a +0.06% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.98%.
Prior to today's trading, shares of the global payments processor had gained 2.51% over the past month. This has outpaced the Business Services sector's gain of 0.33% and the S&P 500's gain of 0.34% in that time.
Market participants will be closely following the financial results of Visa in its upcoming release. The company's earnings per share (EPS) are projected to be $2.66, reflecting a 10.37% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.35 billion, indicating an 8.27% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.22 per share and a revenue of $39.37 billion, indicating changes of +11.64% and +9.6%, respectively, from the former year.
Any recent changes to analyst estimates for Visa 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Visa is currently a Zacks Rank #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 28.31. This valuation marks a premium compared to its industry's average Forward P/E of 15.54.
One should further note that V currently holds a PEG ratio of 2.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. V's industry had an average PEG ratio of 1.26 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.