Visa (V) completed the most recent trading day at $350.63, down 0.41% from the previous session—the stock’s performance behind the S&P 500’s daily rise of 0.01%. Elsewhere, the Dow fell 0.43%, while the tech-heavy Nasdaq rose 0.26%.
Today, shares of the worldwide payments processor have increased by 5.26% in the previous month. The Business Services sector rose 3.38% during the same period, while the S&P 500 fell 2.26%. Analysts and investors will closely watch Visa’s performance in its forthcoming earnings report. The firm is expected to announce an EPS of $2.68, representing a 6.77% increase over the same quarter last year. Meanwhile, our current average estimate for sales is $9.56 billion, representing an 8.91% increase over the same quarter the previous year.
For the whole fiscal year, the Zacks Consensus Estimates predict earnings of $11.30 per share and sales of $39.58 billion, up +12.44% and +10.17%, respectively, from the previous year. Investors may also observe recent adjustments in Visa’s analyst estimates. These modifications demonstrate the dynamic nature of near-term business dynamics. As a result, increased revisions in projections reflect analysts’ optimism about the company’s business operations and potential to make profits.Our study reveals that these changes in estimations directly impact future stock price performance. To take advantage of this, we created the Zacks Rank, a unique algorithm that considers these predicted changes and provides an operational rating system.
The Zacks Rank methodology ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a notable track record of outperformance, as evidenced by third-party audits, with companies rated #1 generating an average yearly return of +25% since 1988. The Zacks Consensus EPS projection has risen 0.91% in the last month. Visa currently carries a Zacks Rank of #2 (Buy).
Looking at value, Visa now has a Forward P/E ratio of 31.17. This value exceeds the industry average Forward P/E of 14.82. Investors should also take note of V’s current PEG ratio of 2.32. The PEG ratio is similar to the P/E ratio, except it also considers the company’s predicted profit growth rate. Based on yesterday’s closing prices, Financial Transaction Services equities had an average PEG ratio of 1.34.
The Financial Transaction Services industry is part of the Business Services category. This has a Zacks Industry 129, placing it in the worst 49% of over 250 industries. The Zacks Industry Rank evaluates the strength of our specific industry groupings by calculating the average Zacks Rank of the individual companies included in the categories. Our analysis reveals that the top 50% of graded industries outperform the bottom half by a proportion of two to one. Use Zacks.com to track these stock-moving variables and more in the subsequent trading sessions.
