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The latest trading session saw Visa (V) ending at $346.35, denoting a -1.17% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.87%.
Coming into today, shares of the global payments processor had lost 3.14% in the past month. In that same time, the Business Services sector lost 4.52%, while the S&P 500 lost 5.59%.
The investment community will be closely monitoring the performance of Visa in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.68, marking a 6.77% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.56 billion, up 8.91% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.31 per share and revenue of $39.58 billion, indicating changes of +12.54% and +10.17%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. Visa currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Visa is at present trading with a Forward P/E ratio of 31. This valuation marks a premium compared to its industry's average Forward P/E of 14.72.
It is also worth noting that V currently has a PEG ratio of 2.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.43 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.