In the latest market close, Visa (V) reached $315.31, with a -1.05% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 1.19%.
Shares of the global payments processor witnessed a gain of 1.14% over the previous month, beating the performance of the Business Services sector with its loss of 2.89% and the S&P 500's loss of 0.36%.
Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. In that report, analysts expect Visa to post earnings of $2.66 per share. This would mark year-over-year growth of 10.37%. Meanwhile, our latest consensus estimate is calling for revenue of $9.35 billion, up 8.27% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.22 per share and a revenue of $39.35 billion, indicating changes of +11.64% and +9.53%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Visa. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 28.4. This expresses a premium compared to the average Forward P/E of 15.59 of its industry.
Meanwhile, V's PEG ratio is currently 2.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.29.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning 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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