Visa (V)

[winston]

not vested

Visa, Inc. (V)

Visa is a $480 billion company, and a long-time component of the Dow Jones Industrial Average. The company dominates the world’s banking card industry, with a 50% market share globally, excluding China.

The US Department of Justice has opened an investigation of Visa’s debit card practices – specifically, into whether or not the company has engaged in illegal anticompetitive practices by preventing merchants from routing Visa-branded debit card transactions over less-expensive networks.

The company’s last three quarters have all shown year-over-year declines in revenues and earnings – although, since Q3 fiscal 2020, the results have been growing sequentially, an indication that improved economic conditions are stimulating commercial activity.

Visa’s most recent report, for Q1 fiscal 2021, showed $5.7 billion at the top line with $3.04 billion in net earnings. These numbers were down 6% and 4% from the prior year quarter.

Three major metrics, however, all point toward continued recovery: payments volume, cross-border volume and processed transactions were up from 4Q20. And even the top line revenue was up 12% quarter-over-quarter.

Visa’s management expressed confidence in the results, and showed it by authorizing an additional $8 billion to the company’s share repurchase program, bringing the total fund available for capital returns to $11 billion. This came after Visa returned $2.5 billion to shareholders in fiscal first quarter.

RBC's Daniel Perlin rates Visa stock an Outperform (i.e. Buy), with a $297 price target indicating a potential 36% upside in the year ahead.

Overall, it’s clear that Wall Street agrees with the bullish outlook on Visa. The stock has 18 recent reviews, breaking down 16 to 2 in favor of Buy versus Hold. V shares are trading for $216.86, and their average target of $247.67 implies a one-year upside of ~13%.

Source: Tip Ranks

https://finance.yahoo.com/news/2-strong ... 08038.html

[winston]

not vested

Overvalued Blue-Chip Stocks: Visa (V)

Since going public in 2008, Visa has achieved solid large-cap growth status with a total return of approximately 1,372%.

The famed global payments company with one of the most recognized brand names on earth operates an asset-light, low capex business model.

Double-digit growth has been the norm for Visa for much of its life as a public company and has traded at P/E multiples in the low 20s. However, today V stock trades at an astounding 43x 2021 estimated EPS.

At this level, share buybacks will destroy shareholder capital, as multiple expansions from these levels are highly unlikely.

Unless we get 10 straight years of very strong global economic growth, valuation ratios for Visa are only going one direction — down.

Source: Investor Place

[winston]

not vested

This Stock Is Approaching Critical Buy Levels

by Nicolas Chahine

Revenues are up more than 30% in five years.

Last year Visa delivered $12 billion in net income and $15.2 billion in cash from operations.

Source: InvestorPlace Media

https://dailytradealert.com/2022/06/16/ ... uy-levels/

[winston]

Buy This Long-Term Winner While It’s On Sale

by Joel Baglole

At roughly $200 a share, V stock is down 10% on the year and 20% below its 52-week high of $252.67.

At the end of April, Visa posted fiscal second quarter earnings-per-share (EPS) of $1.79, a 30% increase from a year ago and topping analyst estimates by nearly 10%.

Revenue climbed 25% year-over-year in the quarter to $7.2 billion, also beating Wall Street expectations.

Analysts forecast that Visa’s annual earnings growth will average 18% during the next five years.

Source: InvestorPlace

https://dailytradealert.com/2022/07/11/ ... s-on-sale/

[winston]

not vested

Visa

Visa benefits from growth in consumer and enterprise spending during these disproportionately long periods of expansion. Put another way, it tends to grow in lockstep with the U.S. and global economy over time.

It certainly doesn’t hurt that Visa finds itself at the top of the pecking order in the U.S., the world’s leading market for consumption. Based on SEC filings from the four major payment processors, Visa accounted for 52.6% of credit card network purchase volume in the U.S. in 2021. It’s the only one of the four major payment processors to meaningfully expand its share of network purchase volume since the financial crisis.

Since Visa isn’t a lender, it doesn’t have to set capital aside to cover loan losses when economic downturns arise. This subtle but important difference is what gives Visa the financial flexibility to bounce back from recessions so quickly.

Don’t overlook Visa’s growth runway, either. The majority of global transactions are still being conducted with cash, which gives Visa plenty of opportunity to organically or acquisitively enter underbanked emerging markets.

Shares of Visa can currently be purchased for 23 times forward-year earnings. That’s the lowest forward-year multiple for this consistent outperformer since 2016.

Source: Daily Trade Alert

[winston]

not vested

Now’s a Great Time to Buy This Dominant Stock

by Jennifer Saibil

4.1 billion cards worldwide, more than 80 million merchant locations, and more than $14 trillion in processing volume during the past year.

Revenue increased 12% over last year in the 2023 fiscal first quarter (ended Dec. 31), and earnings per share (EPS) increased 8%.

14,800 Financial Institutions.

Price-to-earnings ratio of about 31.

Profit margin that’s consistently about or more than 50%.

Source: The Motley Fool

https://tradesoftheday.com/2023/03/23/n ... ant-stock/

[winston]

not vested

Visa (V)

It boasts a rock-solid business, marked by over 50% net income margins in the past five years on average.

The firm saw a healthy transaction bump during the pandemic, with people opting for touch-free payment and eCommerce solutions.

However, the one door closing, the other opened for Visa in the form of resurgent travel and tourism. The robust profit margins on cross-border payments helped the firm to post incredible top and bottom-line growth in the past few quarters.

Though growth rates are expected to normalize, forward estimates are at an eye-catching 14.2%, more than 30% higher than its 5-year averages.

Moreover, according to analysts at Tipranks, V stock is trading at an 18% discount to its intrinsic value.

Source: Investor Place

[winston]

not vested

Card giant Visa sailed past estimates for fourth-quarter profit on Tuesday as consumers on a post-pandemic travel rebound shrugged off worries of a looming economic slowdown and cost-of-living crisis.

Visa’s CFO Chris Suh said US inbound travel recovery accelerated in the quarter, while travel into Asia also continued to improve.

Visa’s payment volumes rose 9 per cent in the quarter, while cross-border volumes excluding transactions within Europe, a gauge of travel demand, surged 18 per cent.

Visa posted adjusted profit of US$2.33 per share in the three months ended Sept 30, topping expectations of US$2.24 per share.

It increased its quarterly dividend by 16 per cent to US$0.52 per share and authorised a new US$25 billion multi-year share repurchase programme.

Source: Phillips

[behappyalways]

How $V makes money
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