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Is Most-Watched Stock Visa Inc. (V) Worth Betting on Now?
VVisa(V) ZACKS·2025-02-20 15:05

Core Viewpoint - Visa has shown strong performance recently, with a +9.8% return over the past month, outperforming the S&P 500's +2.6% and the Financial Transaction Services industry’s +9.2% [1] Earnings Estimates Revisions - Visa is expected to report earnings of 2.68pershareforthecurrentquarter,reflectingayearoveryearincreaseof+6.82.68 per share for the current quarter, reflecting a year-over-year increase of +6.8% [4] - The consensus earnings estimate for the current fiscal year is 11.30, indicating a +12.4% change from the previous year [4] - For the next fiscal year, the consensus estimate is 12.73,suggestinga+12.612.73, suggesting a +12.6% increase from the prior year [5] - The Zacks Consensus Estimate has seen a slight increase of +0.1% over the last 30 days for the current quarter and +1% for the current fiscal year [4][5] Revenue Growth Forecast - The consensus sales estimate for Visa is 9.57 billion for the current quarter, representing a year-over-year growth of +9% [8] - For the current fiscal year, the revenue estimate is 39.59billion,indicatinga+10.239.59 billion, indicating a +10.2% change, while the next fiscal year's estimate is 43.66 billion, reflecting a +10.3% increase [8] Last Reported Results and Surprise History - In the last reported quarter, Visa generated revenues of 9.51billion,a+10.29.51 billion, a +10.2% increase year-over-year, and an EPS of 2.75 compared to 2.41ayearago[9]ThereportedrevenuesexceededtheZacksConsensusEstimateof2.41 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of 9.34 billion by +1.82%, and the EPS surprised by +3.38% [10] - Visa has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [10] Valuation - Visa is graded D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [14] - The assessment of valuation multiples such as P/E, P/S, and P/CF is crucial for determining whether Visa's stock is overvalued, fairly valued, or undervalued [12][13] Conclusion - The Zacks Rank 2 suggests that Visa may outperform the broader market in the near term, despite its premium valuation [15]