Why Visa (V) Outpaced the Stock Market Today

Visa (V) closed at $327.39 in the latest trading session, marking a +1.18% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.22%.The global payments processor's stock has climbed by 0.91% in the past month, falling short of the Business Services sector's gain of 1.06% and the S&P 500's gain of 2.69%.Investors will be eagerly watching for the performance of Visa in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 30, 2025. The company is expected to report EPS of $2.66, up 10.37% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $9.34 billion, showing an 8.18% escalation compared to the year-ago quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.19 per share and a revenue of $39.33 billion, signifying shifts of +11.34% and +9.48%, respectively, from the last year.Investors might also notice recent changes to analyst estimates for Visa. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% decrease. Visa is holding a Zacks Rank of #3 (Hold) right now.Looking at its valuation, Visa is holding a Forward P/E ratio of 28.9. This represents a premium compared to its industry's average Forward P/E of 14.59.One should further note that V currently holds a PEG ratio of 2.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services industry had an average PEG ratio of 1.19 as trading concluded yesterday.The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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