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Visa (V) Dips More Than Broader Markets: What You Should Know

Visa (V) closed at $223.28 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily loss of 0.68%.

Prior to today's trading, shares of the global payments processor had gained 9.43% over the past month. This has outpaced the Business Services sector's gain of 0.56% and the S&P 500's gain of 6.62% in that time.

Wall Street will be looking for positivity from V as it approaches its next earnings report date. This is expected to be April 27, 2021. On that day, V is projected to report earnings of $1.27 per share, which would represent a year-over-year decline of 8.63%. Meanwhile, our latest consensus estimate is calling for revenue of $5.56 billion, down 4.99% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.50 per share and revenue of $23.29 billion. These totals would mark changes of +9.13% and +6.6%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for V. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. V is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, V currently has a Forward P/E ratio of 41.19. This represents a premium compared to its industry's average Forward P/E of 25.69.

Investors should also note that V has a PEG ratio of 2.42 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. V's industry had an average PEG ratio of 2.28 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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