Visa (V) Stock Sinks As Market Gains: What You Should Know
Visa (V) closed at $155.03 in the latest trading session, marking a -0.28% move from the prior day. This change lagged the S&P 500's 0.37% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the global payments processor had gained 8.59% over the past month. This has outpaced the Business Services sector's gain of 3.7% and the S&P 500's gain of 1.83% in that time.
Wall Street will be looking for positivity from V as it approaches its next earnings report date. On that day, V is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 11.71%. Our most recent consensus estimate is calling for quarterly revenue of $5.45 billion, up 7.5% from the year-ago period.
V's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $22.76 billion. These results would represent year-over-year changes of +15.4% and +10.41%, respectively.
Any recent changes to analyst estimates for V should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 0.18% lower. V is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, V is currently trading at a Forward P/E ratio of 29.23. Its industry sports an average Forward P/E of 19.91, so we one might conclude that V is trading at a premium comparatively.
Also, we should mention that V has a PEG ratio of 1.77. 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 1.52 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 172, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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