Visa(US:V) ZACKS·2024-11-29 23:51Company Overview - Visa's stock closed at $315.08, reflecting a slight increase of +0.12% from the previous day, underperforming the S&P 500's gain of 0.56% [1] - Over the past month, Visa's shares have appreciated by 8.57%, which is lower than the Business Services sector's gain of 19.24% but higher than the S&P 500's gain of 3.11% [1] Upcoming Earnings - Visa is expected to report an EPS of $2.67, representing a 10.79% increase compared to the same quarter last year [2] - Revenue is anticipated to reach $9.35 billion, indicating an 8.34% rise from the year-ago quarter [2] Full Year Projections - For the full year, earnings are projected at $11.19 per share and revenue at $39.34 billion, reflecting increases of +11.34% and +9.51% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Visa are crucial as they reflect short-term business trends [4] - Positive estimate revisions indicate analyst optimism regarding the company's business and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Visa at 3 (Hold) [6] - Visa's Forward P/E ratio stands at 28.12, which is a premium compared to its industry's Forward P/E of 16.45 [6] PEG Ratio - Visa has a PEG ratio of 2.11, which accounts for the expected earnings growth rate, while the average PEG ratio for Financial Transaction Services stocks is 1.37 [7] Industry Context - The Financial Transaction Services industry is part of the Business Services sector and holds a Zacks Industry Rank of 124, placing it in the top 50% of over 250 industries [8] - Top-rated industries, as per Zacks Rank, tend to outperform lower-rated ones by a factor of 2 to 1 [8]