Benzinga - by Zacks, Benzinga Contributor.
The most recent trading session ended with Visa (NYSE: V) standing at $276.72, reflecting a -0.37% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.15%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.32%.
The global payments processor's shares have seen a decrease of 1% over the last month, not keeping up with the Business Services sector's loss of 0.73% and the S&P 500's gain of 1.65%.
The upcoming earnings release of Visa will be of great interest to investors. The company's earnings report is expected on April 23, 2024. The company is predicted to post an EPS of $2.42, indicating a 15.79% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.6 billion, up 7.71% from the prior-year quarter.
V's full-year Zacks Consensus Estimates are calling for earnings of $9.89 per share and revenue of $35.7 billion. These results would represent year-over-year changes of +12.77% and +9.32%, respectively.
Any recent changes to analyst estimates for Visa should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Currently, Visa is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Visa is presently being traded at a Forward P/E ratio of 28.09. This valuation marks a premium compared to its industry's average Forward P/E of 15.2.
Meanwhile, V's PEG ratio is currently 1.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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