Visa (V) closed the most recent trading day at $306.92, moving -0.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.86%, and the technology-centric Nasdaq decreased by 0.38%.
The the stock of global payments processor has fallen by 2.23% in the past month, leading the Business Services sector's loss of 5.61% and undershooting the S&P 500's loss of 2.2%.
The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company is slated to reveal its earnings on January 30, 2025. On that day, Visa is projected to report earnings of $2.66 per share, which would represent year-over-year growth of 10.37%. In the meantime, our current consensus estimate forecasts the revenue to be $9.35 billion, indicating an 8.27% growth compared to the corresponding quarter of the prior 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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Visa is currently a Zacks Rank #3 (Hold).
Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 27.43. This signifies a premium in comparison to the average Forward P/E of 13.97 for its industry.
Also, we should mention that V has a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.2.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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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