Visa (V) Stock Drops Despite Market Gains: Important Facts to Note

Visa (V) closed at $318.97 in the latest trading session, marking a -1.24% move from the prior day. This change lagged the S&P 500's 1.75% gain on the day. Meanwhile, the Dow experienced a rise of 1.86%, and the technology-dominated Nasdaq saw an increase of 2.54%. Prior to today's trading, shares of the global payments processor had gained 0.83% outpaced the Business Services sector's loss of 1.26% and the S&P 500's loss of 1.63%.Market participants will be closely following the financial results of Visa in its upcoming release. The company is expected to report EPS of $3.21, up 7.72% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.35 billion, up 11.59% from the year-ago period. V's full-year Zacks Consensus Estimates are calling for earnings of $13.09 per share and revenue of $45.35 billion. These results would represent year-over-year changes of +14.12% and +13.37%, respectively. Investors should also pay attention to any latest changes in analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Visa is currently sporting a Zacks Rank of #2 (Buy). From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 24.66. This represents a premium compared to its industry average Forward P/E of 8.91. It's also important to note that V currently trades at a PEG ratio of 1.73. 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. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.74. The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks