245.40 -0.21 (-0.09%)
After hours: 6:00PM EDT
|Bid||245.01 x 900|
|Ask||245.40 x 800|
|Day's Range||244.02 - 246.85|
|52 Week Range||171.89 - 246.85|
|Beta (3Y Monthly)||1.01|
|PE Ratio (TTM)||43.86|
|Earnings Date||Apr 30, 2019|
|Forward Dividend & Yield||1.32 (0.56%)|
|1y Target Est||252.00|
Visa Beat Earnings Estimates in Q2(Continued from Prior Part)Visa’s valuation Visa (V) is trading at a forward PE ratio of 27.7x, which is higher than its five-year average PE ratio of 24.5x. The stock has largely been trading at a higher forward
The London-based asset manager also bought up Mastercard and American Express stock in the first quarter and cut down its Pfizer investment.
Visa reported slower earnings growth that beat fiscal Q2 estimates after fellow credit card giant American Express reported mixed results earlier this month.
TORONTO , April 24, 2019 /CNW/ - Mastercard and BMO Bank of Montreal today announced that BMO will implement Mastercard Send to deliver faster, more cost-effective and transparent international payment services to its Canadian-based business and commercial banking clients. BMO joins a growing list of global banks working with Mastercard to offer their clients a better way to send money around the world. With Mastercard Send, BMO can offer its clients the ability to send cross-border payments efficiently, seamlessly and securely to bank accounts in more than 75 countries.
Mastercard and Visa stock have benefited from growing credit-card use, fueled in part by the rise of online shopping, and their dominant positions in the payments business
MasterCard (MA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
As new technologies and regulations bring new opportunities and challenges to the financial services industry, nearly two-thirds of established companies are leveraging fintech capabilities for growth, according to a new survey from Harvard Business Review Analytic Services. “In the Game: Traditional Financial Institutions Embrace Fintech Disruption” surveyed 300 senior executives at financial services companies to gauge their views on the opportunities and threats brought about by newer, nimbler competitors that rely heavily on specialized software, algorithms, and technology to offer their services. The Mastercard-sponsored study showed that traditional institutions are “banking” on brand recognition, customer trust, physical distribution channels, and experience navigating the complex regulatory environments to maintain a competitive advantage.
Cybersecurity and Artificial Intelligence (AI) are two of the hottest technology fields today, with job opportunities continuing to grow across both. To help narrow the gender gap, Mastercard has been cultivating young technology enthusiasts as part of its signature education platform, Girls4Tech. Currently in its fifth year, this hands-on, inquiry-based STEM program has reached more than 400,000 girls (ages 8-12) in 25 countries, more than doubling its established 2017 goal. Today, as Mastercard marks the 5th anniversary of the program, the company builds on a successful track record of impact with an even more ambitious commitment to reach one million girls by 2025.
Visa and MasterCard are two of the most widely used credit card brands, but are the differences between the two significant enough to influence consumers?
After Western sanctions gutted Russia's financial system five years ago, a new bank card began appearing in the wallets of many Russians. Now the country is hoping to introduce its cards, known as Mir cards, to foreign markets where Russian nationals live and travel, Vladimir Komlev, the head of Russia's National Card Payment System (NSPK), told Reuters in an interview. "In the next three years we want Mir cards to be operational in countries where Russians are used to travelling," Komlev said.
The man spearheading the £14bn legal claim against Mastercard has defended the advent of US-style class actions in Britain, saying they give wronged consumers the chance to hold businesses to account. ...
Credit card giant American Express reported mixed first-quarter results early Thursday, kicking off results for big payments stocks.
Although this year the stock market sentiment is in a much better state, the banks still have their reputation that they cannot hold their rallies. But therein lies part of the opportunity in American Express (NYSE:AXP) stock today.Source: Marcus Quigmire Via FlickrThis round of bank earnings has so far gone much better than the last one. There is some chatter about a sustainable rally in their stocks. On Tuesday we even saw a flip from red to green in stocks like Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM).This hasn't happened in a while, so perhaps the trend that banks can't hold their greens is dying. If so then this will provide a lift to AXP stock as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, transaction companies like AXP, Visa (NYSE:V), MasterCard (NYSE:MA) and Square (NYSE:SQ) rally in sympathy with money center banks. So if the Financial Select Sector SPDR Fund (NYSEARCA:XLF) rallies then so will the transactors like AXP.In addition, AXP is an excellent financial stock that has proven over the years that they can manage through adversity. Case in point was the debacle over losing the Costco (NASDAQ:COST) account. The stock suffered for a while but has since set new all-time highs.I was lucky to ride the last mega breakout in AXP from the December lows. American Express rallied over 25% so today I am trying to catch the next opportunity. Usually, I consider these technical opportunities tactical trades but this one doubles as a long term conviction investment. This is a stock I want to own for the long term. * 10 Best Stocks to Buy and Hold Forever The reaction this morning is slightly negative from the earnings. Management reported a boring quarter where they barely beat the bottom line and narrowly missed sales. The forward guidance was in line so they gave traders nothing to cheer. So AXP will move in line with the overall equity market for now.So if this rally in stocks continues, then AXP stock has the opportunity to break out from $114.40 to target another $10 run from there. There will be resistance there but if the bulls can close above it then the bears will be tired so the stock will overshoot higher.The macroeconomic condition still favors the bullish thesis. We do have threats from lingering headlines of tariff wars. But as we approach another round of elections means that those deals will happen so we go back to trading the profit and loss statements rather than headlines.Most importantly, the threat from the Federal Reserve inverting the curve has disappeared. They have affirmed that they won't cause the short term rates rise above the long term rates so this relives fears for banks. The steeper the curve the better are their profits.For American Express stock, the short term price action from the earnings headline is meaningless for the long term. All global transactions will be electronic so the demand on their services will continue to increase. There are only but a few companies that serve this market and they are a global household name. So they are well set to continue to prosper for years.Then there is the China market opportunity. The U.S. and China are nearing a deal where companies like AXP could have a new opportunity become available in the largest market on the planet.The short term technical threat for AXP stock is at $108 per share. If the bears push price below it they could target $102 per share. This is not a forecast but it is a scenario that could unfold in the next few weeks. But even then, this won't change the overall opportunity for the long term.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Why You Should Buy and Hold American Express Stock appeared first on InvestorPlace.
Berkshire-Backed StoneCo Tumbles after ITUB Ups AnteStoneCoStoneCo (STNE) was trading down 27.6% as of 1:30 PM ET. The negative price action was driven by an announcement by Itaú Unibanco Holding (ITUB). Reuters reported, “Rede, Itaú’s card
LOS ANGELES, April 18, 2019 /PRNewswire/ -- Stand Up To Cancer (SU2C), Mastercard and Marvel Studios' Avengers: Endgame announced today that they are teaming up to take down one of the biggest villains of all, cancer, with an impactful new Public Service Announcement scheduled to launch in April. The two global brands are collaborating to raise awareness for SU2C to help all patients become long-term survivors.
Visa (NYSE:V) is slated to reports its second-quarter earnings on Apr. 24 after the market closes. The payments processing giant continues to build market share and establish a reputation for beating earnings estimates, enabling Visa stock to trade near its all-time highs.Source: Shutterstock However, the company has begun to lose one high-profile customer. Moreover, a well-funded competitor has entered the credit-card business. Those developments could cause some owners of V stock to question its rising price-earnings multiple. * 7 Stocks to Buy for Spring Season Growth Although those issues don't pose an immediate threat to Visa's dominance, they could make investors think twice about buying Visa stock at its current levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Visa Should Beat Analysts' Estimates, But Is That Enough?For the second quarter, analysts on average expects Visa's earnings per share to come in at $1.24. If Visa hits that target, its EPS will have risen 11.7% year-over-year. Analysts' consensus revenue estimate is $5.46 billion, versus the $5.07 billion of revenue that the company reported in the same quarter of 2018.Since V has exceeded analysts' consensus earnings expectations in each of the previous four quarters, its Q2 results will probably beat the consensus outlook as well. As our society continues to increasingly give up cash, Visa and its peers should continue to benefit from that trend.Furthermore, Visa continues to gain market share from archrival Mastercard (NYSE:MA) as well as peers such as American Express (NYSE:AXP) and Discover (NYSE:DFS). As late as the third quarter of last year, Visa claimed more than 61% of total U.S. card volume. That makes Visa stock a compelling long-term buy on any pullback, even if the company's Q2 results are surprisingly negative.However, I see signs that the short-term outlook of Visa is not entirely positive. The price-earnings ratio of Visa stock now stands at around 34.5. That comes in slightly ahead of the long-term average multiple of V stock, which is about 32.6. Since Visa's profit is expected to increase 15.2% this year, I think Visa stock price is mildly overvalued.Meanwhile, V stock looks less than compelling when investors can buy AXP stock at about 14 times its earnings. By buying AXP, whose profits are expected to rise 11% this year, traders obtain about 72% of the growth of Visa at around 40% of the price. Visa Stock Faces Rising ThreatsAlso, Visa has used its dominant position to raise the fees that it charges merchants. That has prompted Kroger (NYSE:KR) to refuse to accept Visa cards at some of its locations. For now, Kroger is only refusing to accept Visa's credit cards at 21 of its Foods Co. stores in California. However, it will soon extend this ban to both its Smith's Food and Drug stores and its fuel centers in seven states.That places V in an awkward position. If Kroger stops accepting Visa at all of its stores or if other retailers start refusing to accept Visa cards at some of their stores, Visa's revenues could meaningfully drop. However, if Visa relents and lowers its fees, that will likely reduce its profits, negatively impacting Visa stock.Moreover, Apple (NASDAQ:AAPL) has partnered with Goldman Sachs (NYSE:GS) and Mastercard on its new Apple Card. At first glance, the card provides some benefits, such as faster cash-back rewards and enhanced security, since it does not use numbers.Still, it appears that the card will limit most of those benefits to consumers who are already using Apple's iOS ecosystem. For that reason, I would not expect the Apple Card to supplant Visa's dominant position. However, Apple Card could take market share from Visa, negatively impacting the Visa stock price. Concluding Thoughts on Visa StockAlthough Visa will more than likely post higher-than-expected earnings and revenue, emerging competitive threats could create doubts about Visa stock.Meanwhile, the valuations of Visa stock have begun to climb above their long-term averages. Also, Visa's rising fees have started to prompt merchants to push their customers to other cards. Furthermore, the Apple Card will give consumers another reason to avoid Visa.Despite the new threats, Visa stock should continue to benefit from double-digit profit growth. However, retailers and customers will take advantage of the lower fees of Visa's peers. Also, traders can invest in a credit-card network at a much lower multiple by buying AXP stock.As a result, the driving force of Visa stock could be the rising threats of better alternatives for multiple players. That does not mean investors should sell Visa stock. But investors still need to account for those dangers when they're considering buying V stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Going Into Earnings, Is Visa Stock Everywhere You Want It to Be? appeared first on InvestorPlace.