Trade-Ideas: Visa (V) Is Today's Pre-Market Leader Stock
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.
Trade-Ideas LLC identified
(
) as a pre-market leader 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 $4.3 billion.
- V traded 14,050 shares today in the pre-market hours as of 8:30 AM.
- V is up 302% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in V with the Ticky from Trade-Ideas. See the FREE profile for V NOW at Trade-Ideas
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 29.9. Currently there are 21 analysts that rate Visa a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Visa has been 10.7 million shares per day over the past 30 days. Visa has a market cap of $131.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.82 and a short float of 2.9% with 0.90 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Thursday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
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, increase in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 7.2%. 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.45, which illustrates the ability to avoid short-term cash problems.
- VISA INC has improved earnings per share by 15.0% 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 ($2.60 versus $2.15).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 11.5% when compared to the same quarter one year prior, going from $1,407.00 million to $1,569.00 million.
- The gross profit margin for VISA INC is rather high; currently it is at 69.72%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 46.39% significantly outperformed against the industry average.
- You can view the full Visa Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null