Visa (V) Is Today's Post-Market Loser Stock

Trade-Ideas LLC identified Visa (V) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Visa

(

V

) as a post-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 $628.2 million.
  • V is down 2.4% today from today's close.

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More details on V:

Visa Inc., a payments technology company, operates an open-loop 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 28. Currently there are 18 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 8.8 million shares per day over the past 30 days. Visa has a market cap of $170.8 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.05 and a short float of 2.4% with 5.98 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Wednesday.

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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, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.56, which clearly demonstrates the ability to cover short-term cash needs.
  • VISA INC has improved earnings per share by 12.7% 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 $2.57 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($2.79 versus $2.57).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 10.1% when compared to the same quarter one year prior, going from $1,550.00 million to $1,707.00 million.
  • The gross profit margin for VISA INC is currently very high, coming in at 70.49%. Regardless of V's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, V's net profit margin of 47.07% significantly outperformed against the industry.

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