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

Visa (V) closed at $145.35 in the latest trading session, marking a -1% move from the prior day. This change lagged the S&P 500's 0.55% loss on the day. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.16%.

Heading into today, shares of the global payments processor had gained 1.56% over the past month, outpacing the Business Services sector's loss of 1.72% and the S&P 500's gain of 0.37% in that time.

Investors will be hoping for strength from V as it approaches its next earnings release, which is expected to be October 24, 2018. On that day, V is projected to report earnings of $1.20 per share, which would represent year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $5.42 billion, up 11.61% from the year-ago period.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. V is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that V has a Forward P/E ratio of 27.58 right now. This represents a premium compared to its industry's average Forward P/E of 22.01.

We can also see that V currently has a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. V's industry had an average PEG ratio of 1.59 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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