Visa (V) wins but lags in the market: what you need to know

Visa (V) closed at $ 223.81 on the last trading session, marking a movement of + 0.35% from the previous day. This change was smaller than the S&P 500’s 0.85% gain on the day.

Prior to today, shares of the global payment processor had lost 4.9% in the last month, trailing the business services sector gain of 0.21% and the S&P 500 loss of 0, 37% during this period.

Investors are hoping for a strength of V as the next release of its results approaches. In this report, analysts expect V to post earnings of $ 1.53 per share. That would mark year-over-year growth of 36.61%. Meanwhile, our latest consensus estimate projects revenue of $ 6.45 billion, up 26.42% from the previous year’s quarter.

For the full year, our Zacks consensus estimates project earnings of $ 5.82 per share and revenue of $ 23.96 billion, which would represent changes of + 15.48% and + 9.7%. , respectively, compared to the previous year.

Investors should also note any recent changes in analysts’ estimates for V. These recent revisions tend to reflect the evolving nature of near-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.

Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.

Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. Over the past month, Zacks Consensus EPS estimate has risen 0.74%. V currently has a Zacks rank of # 3 (Hold).

Digging into the valuation, V currently has a forward P / E ratio of 38.32. This represents a premium over its industry’s average forward P / E of 20.82.

Meanwhile, V’s PEG ratio is currently 1.99. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Industry V had an average PEG ratio of 1.27 at yesterday’s close.

The financial transaction services industry is part of the business services sector. This group has a Zacks Industry Rank of 121, which places it in the top 48% of the 250+ industries.

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

To follow V in future trading sessions, be sure to use

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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