Visa (V) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Visa has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2] Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3] - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3] Visa's Earnings Outlook - For the fiscal year ending September 2025, Visa is expected to earn $11.27 per share, representing a 12.1% increase from the previous year [7] - Over the past three months, the Zacks Consensus Estimate for Visa has increased by 0.5% [7] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6] - The upgrade of Visa to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for near-term price appreciation [9]