Trade-Ideas: Visa (V) Is Today's New Lifetime High Stock

Trade-Ideas LLC identified Visa (V) as a new lifetime high candidate
By Jamie Hodge ,

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Visa

(

V

) as a new lifetime high 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 $503.0 million.
  • V has traded 3.3 million shares today.
  • V is trading at a new lifetime high.

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More details on V:

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It 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 52.8. Currently there are 21 analysts that rate Visa a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Visa has been 3.2 million shares per day over the past 30 days. Visa has a market cap of $99.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.53 and a short float of 2.2% with 4.54 days to cover. Shares are up 26.2% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Visa as a

buy

. 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.1%. Since the same quarter one year prior, revenues rose by 14.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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. To add to this, V has a quick ratio of 1.71, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for VISA INC is rather high; currently it is at 66.23%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 42.93% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $1,644.00 million or 49.86% when compared to the same quarter last year. In addition, VISA INC has also vastly surpassed the industry average cash flow growth rate of -20.99%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 49.43% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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