Today, April 27, 2022, the stock market put in a mixed day, which was welcome after a big selloff the day before. Overall, the S&P 500 rose 0.2% while the NASDAQ was flat during the session.
Visa Leads the Market
Leading the market was Visa (V) which was up 6% after the company reported earnings last night that beat our expectations:
- Reported: $1.79 vs. $1.38 = +30%
- Estimates: $1.66 vs. $1.38 = +20%
- Beat the street by $0.13
- Revenue: +26%
Visa’s payments volume increased 17% during the qtr, on a constant currency basis. With V now at$214 a share, the company has a P/E of 30. My Fair Value is a P/E of 35, which was $232 a share as of last qtr.
We will update our outlook on the stock next week.
Chart of the Day
Today’s chart of the day is this ten-year chart of Lockheed Martin (LMT). LMT has been in the news lately for its F-35 fighter jets, which are in demand with European countries looking to up their defense.
Shares of LMT closed at $445 today. The 52-week high is $480 on March 7. That’s also the day I bought clients in at.
I bought LMT too high. That’s a mistake on my part.
The lesson I learned is don’t buy these Blue Chip value stocks when the news is good. Buy when they are down-and-out of favor. Notice this stock has given investors four serious dips to buy in at during the past five years.
