Why the Market Dipped But Visa (V) Gained Today

Visa (V) closed the most recent trading day at $318.30, moving +0.76% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 0.32%.Shares of the global payments processor have appreciated by 1.19% over the course of the past month, underperforming the Business Services sector's gain of 3% and the S&P 500's gain of 3.6%.The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. On that day, Visa is projected to report earnings of $2.67 per share, which would represent year-over-year growth of 10.79%. Alongside, our most recent consensus estimate is anticipating revenue of $9.36 billion, indicating an 8.4% upward movement from the same quarter last year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.23 per share and a revenue of $39.35 billion, indicating changes of +11.74% and +9.53%, respectively, from the former year.Investors might also notice recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Visa is currently a Zacks Rank #3 (Hold).Digging into valuation, Visa currently has a Forward P/E ratio of 28.14. Its industry sports an average Forward P/E of 16.01, so one might conclude that Visa is trading at a premium comparatively.One should further note that V currently holds a PEG ratio of 2.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.32.The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks