Visa, Inc. – Momentum – Zacks Rank Buy
Source: http://www.zacks.com/commentary/11291/Visa%2C+Inc.+-+Momentum+-+Zacks+Rank+BuyPosted on Wednesday, June 24th, 2009 | In Market Commentary, Stocks to Watch
Visa, Inc. (V) is fresh off the heels of an impressive 6-month run in which its share price advanced from just above $41 to a recent high-water mark above $71. Estimates have risen in tandem, keeping valuations in check.
Company Description
Visa, Inc., through its subsidiaries, operates retail payment networks worldwide. The company was founded in 1958, went public in 2008 and has a market cap of $48 billion.
Shares of Visa received a nice boost when the company reported strong second-quarter results in late April that were ahead of expectations.
Second-Quarter Results
Revenue was up 13% from last year to $1.6 billion. Income was up even more, coming in at $536 million against last year’s $314 million, producing earnings of 73 cents per share, 9 cents ahead of the consensus.
Visa noted that it saw a slight decline in its domestic business due to the general economic decline but added that its strong international presence enabled it to boost its results.
Consistent Results
This was the fourth time in the last four quarters that the company has surprised and beat estimates, having done so by an average of 9 cents, or 15%.
Estimates Up
Estimates have been slowly ticking higher over the past few months, with the current year up 12 cents to $2.82 per share. The next-year estimate is bullish, standing at $3.37, a 19% earnings growth projection.
The Chart
Shares of Visa bottomed out in early 2009 before turning higher and posting impressive gains for the last few months as the overall market rallied. Shares bumped into some resistance at $70 and have since retreated a bit, but the long-term trend is still in tact. Take a look below.
Last 5 posts by Michael Vodicka
- Arena Resources Inc. - Momentum - Zacks Rank Buy - November 24th, 2009
- E House China Holdings Ltd. - Momentum - Zacks Rank Buy - November 23rd, 2009
- Nordstrom Inc. - Momentum - Zacks Rank Buy - November 20th, 2009
- These 2 stocks are both on the move, one hitting a new 52-week high and the other moving into position to do so. - Charting Zacks Elite Stocks - November 20th, 2009
- Fossil Inc. - Momentum - Zacks Rank Buy - November 19th, 2009
cent;, general economic decline, Market Commentary, retail payment networks, Stocks to Watch, USD, Visa Inc, Zacks Market Commentaries
 About Michael Vodicka (http://www.zacks.com/)
Michael is an Editor at Zacks Investment Research who covers the Momentum and Aggressive Stocks for the Zacks Rank Buys. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.