Visa(V) ZACKS·2025-01-28 00:26Core Viewpoint - The 2024 Q4 earnings season is underway, with Mastercard and Visa expected to report strong financial results despite slight downward revisions in EPS and sales estimates [1][11]. Earnings Expectations - EPS estimates for Visa are at 3.68, reflecting a 15% growth from the previous year [4]. - Sales expectations for Mastercard are projected to grow by 15%, and Visa's sales are expected to increase by 10% year-over-year [8]. Valuation Insights - Mastercard shares are trading at a forward 12-month earnings multiple of 32.5X, while Visa's multiple stands at 28.3X, both above their five-year medians but below their five-year highs [9]. - The current PEG ratios for both companies are also above five-year medians, indicating higher growth expectations among investors [9]. Market Context - The anticipated growth for both companies is attributed to continued consumer strength and a resilient U.S. economy, which has positively impacted their recent quarterly performances [10]. - Both stocks are entering their earnings releases with positive momentum, supported by favorable consumer sentiment [14].