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

Company Performance - Visa's stock closed at $306.92, reflecting a decrease of 0.26% from the previous trading session, underperforming the S&P 500's gain of 0.16% [1] - Over the past month, Visa's stock has declined by 2.23%, while the Business Services sector has lost 5.61% and the S&P 500 has decreased by 2.2% [1] Earnings Forecast - Visa is expected to report earnings of$ 2.66 per share on January 30, 2025, representing a year-over-year growth of 10.37% [2] - The revenue forecast for the same quarter is $9.35 billion, indicating an 8.27% growth compared to the previous year [2] - For the entire year, the consensus estimates predict earnings of$ 11.22 per share and revenue of $39.35 billion, reflecting changes of +11.64% and +9.53% respectively [3] Analyst Estimates - Recent modifications to analyst estimates for Visa indicate a favorable outlook on the company's business health and profitability [4] - The consensus EPS projection has decreased by 0.06% in the past 30 days, and Visa currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - Visa's Forward P/E ratio stands at 27.43, which is a premium compared to the industry average of 13.97 [7] - The company has a PEG ratio of 2.06, while the Financial Transaction Services industry has an average PEG ratio of 1.2 [7] Industry Context - The Financial Transaction Services industry, part of the Business Services sector, has a Zacks Industry Rank of 75, placing it in the top 30% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]