Benzinga - by Zacks, Benzinga Contributor.
In the latest market close, Visa (NYSE: V) reached $271.28, with a -1.7% movement compared to the previous day. This change lagged the S&P 500's 1.2% loss on the day. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 1.79%.
Prior to today's trading, shares of the global payments processor had lost 2.5% over the past month. This has was narrower than the Business Services sector's loss of 3.41% and lagged the S&P 500's loss of 0.85% in that time.
The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company is slated to reveal its earnings on April 23, 2024. The company's upcoming EPS is projected at $2.42, signifying a 15.79% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $8.6 billion, indicating a 7.71% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.89 per share and revenue of $35.7 billion. These totals would mark changes of +12.77% and +9.32%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Visa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Visa is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Visa is presently trading at a Forward P/E ratio of 27.91. Its industry sports an average Forward P/E of 14.6, so one might conclude that Visa is trading at a premium comparatively.
Meanwhile, V's PEG ratio is currently 1.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.16.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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