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Visa (V) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3-min read

Visa (V) closed the most recent trading day at $200.56, moving +1.58% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 1.72%.

Heading into today, shares of the global payments processor had lost 4.34% over the past month, lagging the Business Services sector's loss of 2.11% and the S&P 500's loss of 3.29% in that time.

Investors will be hoping for strength from V as it approaches its next earnings release. In that report, analysts expect V to post earnings of $1.10 per share. This would mark a year-over-year decline of 25.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.03 billion, down 18.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $21.78 billion. These totals would mark changes of -7.9% and -5.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for V. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. V is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note V's current valuation metrics, including its Forward P/E ratio of 39.41. This represents a premium compared to its industry's average Forward P/E of 25.74.

Meanwhile, V's PEG ratio is currently 3. 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. V's industry had an average PEG ratio of 1.38 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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