Visa (V) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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The latest trading session saw Visa (V) ending at $315.08, denoting a +0.12% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow saw an upswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.83%.

Shares of the global payments processor have appreciated by 8.57% over the course of the past month, underperforming the Business Services sector's gain of 19.24% and outperforming the S&P 500's gain of 3.11%.

The upcoming earnings release of Visa will be of great interest to investors. It is anticipated that the company will report an EPS of $2.67, marking a 10.79% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.35 billion, showing an 8.34% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $11.19 per share and a revenue of $39.34 billion, demonstrating changes of +11.34% and +9.51%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. Visa presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Visa is holding a Forward P/E ratio of 28.12. This indicates a premium in contrast to its industry's Forward P/E of 16.45.

We can additionally observe that V currently boasts a PEG ratio of 2.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 124, positioning it in the top 50% of all 250+ industries.