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
) 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 $599.6 million.
- V has traded 5,063 shares today.
- V is trading at a new lifetime high.
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 0.8%. V has a PE ratio of 29.0. Currently there are 20 analysts that rate Visa a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Visa has been 2.9 million shares per day over the past 30 days. Visa has a market cap of $123.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.78 and a short float of 3.2% with 6.90 days to cover. Shares are up 12.2% year-to-date as of the close of trading on Wednesday.
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, expanding profit margins, notable return on equity and solid stock price performance. We feel these 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 6.6%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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 1.35, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for VISA INC is rather high; currently it is at 65.56%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.23% significantly outperformed against the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the IT Services industry and the overall market on the basis of return on equity, VISA INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Compared to its closing price of one year ago, V's share price has jumped by 25.59%, exceeding the performance of the broader market during that same time frame. 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.
- You can view the full Visa Ratings Report.