Pre-Market Laggard: Visa (V)
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Visa as such a stock due to the following factors:
- V has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $711.6 million.
- V traded 102,167 shares today in the pre-market hours as of 7:54 AM.
- V is down 2.1% today from yesterday's close.
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More details on V:
Visa Inc., a payments technology company, operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The stock currently has a dividend yield of 0.7%. V has a PE ratio of 33. Currently there are 20 analysts that rate Visa a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Visa has been 8.7 million shares per day over the past 30 days. Visa has a market cap of $151.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.93 and a short float of 3.8% with 8.03 days to cover. Shares are up 19.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Visa as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 27.2%. Since the same quarter one year prior, revenues rose by 11.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- V has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
- VISA INC has improved earnings per share by 27.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VISA INC increased its bottom line by earning $2.15 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $2.15).
- The gross profit margin for VISA INC is rather high; currently it is at 67.99%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 48.23% significantly outperformed against the industry average.
- Net operating cash flow has slightly increased to $2,111.00 million or 8.70% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.35%.
- You can view the full Visa Ratings Report.
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