The stock is expensively priced, but then again, it has always been expensively priced.
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New York, NY (PRWEB) November 15, 2012
In a recent Profit Confidential article, contributor and financial expert Mitchell Clark reports that, according to Visa’s recently released fourth-quarter and year-end financial results, the company’s revenues grew to $2.7 billion in its latest quarter, up from $2.4 billion. But after a tax reversal, he adds, earnings accelerated significantly to $1.7 billion, way up from $880 million in the same quarter last year. (Source: “Visa Inc. Posts Strong Fiscal Fourth Quarter and Full-Year 2012 Adjusted Earnings Results,” MarketWatch, October 31, 2012.) According to Clark, these results support Visa’s position as a top performer on the stock market over the last year.
In the article “Where to Get the Best Earnings in This Stock Market,” Clark states that “If there is one international business in which [one] could still say, ‘business is booming,’ it would be Visa… This company has been a powerhouse wealth-creator on the stock market and so far has been immune to the economic woes facing the largest economies.”
Currently trading around $140.00 a share, Clark reports that the stock was $90.00 a share this time last year.
“The stock is expensively priced, but then again, it has always been expensively priced,” says Clark. “Visa is a large-cap, blue chip company with a lot of staying power.”
While a company like Visa is doing well due to grow in emerging markets, Clark points out that it’s more of an exception in the current market.
“Companies like McDonalds and 3M have struggled to grow their earnings due to weakness in Europe, Japan, and China,” says Clark. “So if there is one clear trend this latest earnings season, it’s that weakness abroad is definitely taking a toll on corporate revenues and earnings.”
As the Profit Confidential expert reasons, U.S. operations are showing the most stability, and this should be a consideration for stock market investors looking at new positions. If there is any large economy that is best positioned to generate economic growth going forward, Clark concludes that it’s the U.S. economy.
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Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.