Visa (V – Free Report) closed at $313.04 in the latest trading session, marking a -0.59% move from the prior day. The stock’s performance was behind the S&P 500’s daily gain of 0.55%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 1.24%.
Analysts and investors alike will be keeping a close eye on the performance of Visa in its upcoming earnings disclosure. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.22 per share and revenue of $39.35 billion, indicating changes of +11.64% and +9.53%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there’s been a 0.03% fall in the Zacks Consensus EPS estimate. Visa is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Visa currently has a Forward P/E ratio of 28.07. This represents a premium compared to its industry’s average Forward P/E of 14.33.
It is also worth noting that V currently has a PEG ratio of 2.11. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.35 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 91, putting it in the top 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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