Visa Inc Class A (V:NYE) Analysts are bullish with a Strong Buy

STA Research
by: STA Research
Visa Inc

Based on the Visa Stock forecast from 18 analysts, the average analyst Visa stock price target is USD 261.78 over the next 12 months. Visa Inc Class A’s average analyst rating is Strong Buy. Stock Target Advisor’s own Visa stock forecast is Slightly Bullish, which is based on 9 positive signals and 5 negative signals. At the last closing, Visa stock price was USD 212.49Visa stock price has changed by -1.17% over the past week, +6.98% over the past month and -15.32% over the last year.

Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. In addition, the company offers card products, platforms, and value-added services. It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.

What we like:

High market capitalization:

The visa stock forecast shows this is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

The  annual visa stock price returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Below median total returns:

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings:

The visa stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

The visa stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

The visa stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis:

The visa stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

Disclaimer

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