| Stock (Symbol) | Stock Price | |
Visa (V) |
$75 |
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| Data is as of | Expected to Report | Sector |
July 31, 2015 |
Oct 27 – Nov 11 |
Financial |
| Sharek’s Take | ||
 Visa (V) is a timely stock right now, and a merger with Visa Europe would boost V’s expected profit growth rate from 18% to 20% per year. The companies are in negotiations now, and I expect the deal to finalize by October, and send shares of V higher. Visa broke out after it reported earnings that beat the street by 15 cents last qtr, but the beat was a one-time thing and estimates didn’t jump, so the headlines were more than the underlying story. Visa has everything you want in a stock. It’s grown profit every year since its IPO in 2008, pays a dividend of around 0.7%, has a top safety rating of 1 from Value Line, and buys back its own stock — which helps during turbulent times like this as management can buy when shares fall, creating stability. This is a buy-and-hold investment that could deliver total returns of 20% per year, and I got us in on a dip at $69 which is just 23x earnings. |
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| One-Year Chart | ||
 This chart was done around a month ago before the stock market crashed. Still, V wasn’t coming down much even with the Dow dropping 1000 points. That’s strength. Estimates show mid-teens profit growth ahead, and I expect V to come in right around that. 37% growth was likely a one time thing. |
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| Earnings Table | ||
 Revenue grew 12% last qtr which is pretty good as foreign exchange hurt this number.V beat by 15 cents due to a one-time tax benefit. It only beat by a penny the prior 2 qtrs. Annual Profit Estimates ticked up slightly. Profit growth looks to be in the mid-teens the next few qtrs. |
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| Fair Value | ||
 Visa has a fantastic business model that allows it to grow profits each year. But recently the P/E got high, so I’m glad we were able to pick up V on a dip. The company has a September fiscal year-end, and I got us in at 23x 2016 estimates. |
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| Ten-Year Chart | ||
 What’s also nice about Visa is it gives us a Financial stock. Most Financials are slow growth banks, its tough to find growth (safe growth) in this sector. Note the growth rate has slowed over the years. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
15 of 26 |
Visa has everything investors want. The company grows in the high-teens, management buys back stock as well as paying a dividend, and most importantly this is a safe stock as the business grows consistently. |
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Aggressive Growth Portfolio
N/A |
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