Visa (V) Gains But Lags Market: What You Should Know

Visa (V) closed the most recent trading day at $332.92, moving +0.23% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.Shares of the global payments processor have depreciated by 5.3% over the course of the past month, outperforming the Business Services sector's loss of 10.16% and the S&P 500's loss of 8.15%.The upcoming earnings release of Visa will be of great interest to investors. On that day, Visa is projected to report earnings of $2.68 per share, which would represent year-over-year growth of 6.77%. In the meantime, our current consensus estimate forecasts the revenue to be $9.56 billion, indicating an 8.91% growth compared to the corresponding quarter of the prior year.For the full year, the Zacks Consensus Estimates project earnings of $11.30 per share and a revenue of $39.58 billion, demonstrating changes of +12.44% and +10.17%, respectively, from the preceding year.Investors should also pay attention to any latest changes in analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. As of now, Visa holds a Zacks Rank of #3 (Hold).Investors should also note Visa's current valuation metrics, including its Forward P/E ratio of 29.4. This represents a premium compared to its industry's average Forward P/E of 15.13.It's also important to note that V currently trades at a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services industry had an average PEG ratio of 1.38 as trading concluded yesterday.The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 133, finds itself in the bottom 48% echelons of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Visa Inc. (V): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks