Bull’s Eye Report: Visa (V)

While V looks set to run, it's always prudent to use a stop loss.

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Visa V Data Processing & Outsourced Services 7.2 +6.67% $160.88


Why We Like The Stock:

Visa (NYSE:V) is our most compelling buy today due to the fact that it is a top-rated stock (in terms of earnings strength and company/industry performance) sporting a long-term uptrend. Like other Data Processing & Outsourced Services stocks Mastercard (NYSE:MA), Automatic Data Processing (NYSE:ADP), and Fidelity National Information Services (NYSE:FIS), Visa has been trending higher for quite some time.

Since the beginning of 2011, the stock has been a steady gainer. While there have been pullbacks along the way, V has continued to make higher highs and higher lows for a little over two years now. 2013 hasn’t exactly been explosive for this stock, though we like V at current prices after a brief pullback from recent highs at $170. The stock has solid support right above $160, and we would use the 50-day moving average ($160.88) as a stop to limit the downside. Should V continue in its long-term path, we like the stock as a buy at current prices.

 

We Would Be Buyers:

At the current price (~$163.00).

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Company Profile:

Visa is a global payments technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. The Company operates processing networks, VisaNet, offering fraud protection for consumers and assured payment for merchants. The Company operates an open-loop payments network, a multi-party system in which Visa connects issuing financial institutions, or issuers, that issue cards to cardholders, and acquiring financial institutions, or acquirers, that have the banking relationship with merchants-and manage the exchange of information and value between them.

The Company derives revenues primarily from fees paid by its clients based on payments volume, transactions that it processes and other related services the Company provides. Its clients deliver Visa products and payment services to consumers and merchants based on product platforms it defines and manages.

 

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

 

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: V

Note: Positions may be bought or sold while this publication is in circulation without notice.

 

Visa - Last 3 Months

 Bull's Eye Report: Visa (V)

Visa - Last 12 Months

 Bull's Eye Report: Visa (V)

Visa - Last 5 Years

 Bull's Eye Report: Visa (V)


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