240.80 -0.09 (-0.04%)
After hours: 4:30PM EDT
|Bid||240.99 x 2900|
|Ask||241.03 x 1100|
|Day's Range||240.46 - 242.65|
|52 Week Range||170.65 - 242.65|
|Beta (3Y Monthly)||1.01|
|PE Ratio (TTM)||43.02|
|Earnings Date||Apr 30, 2019|
|Forward Dividend & Yield||1.32 (0.56%)|
|1y Target Est||248.32|
Credit card giant American Express reported mixed first-quarter results early Thursday, kicking off results for big payments stocks.
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.
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Mastercard Incorpora...
What to Expect from Visa's Q2 Earnings(Continued from Prior Part)Price revisions in April Visa (V) has seen three upward revisions in its target price in April. On April 10, Cowen increased its target price for Visa from $161 to $177. On April 8,
Almost every adult in the UK could be due a payout averaging £300 after a surprise court ruling paved the way for a £14bn lawsuit against Mastercard to go ahead. The claim brought by former financial ombudsman Walter Merricks alleges that more than 46 million people overpaid on purchases because of Mastercard’s high fees. On Tuesday the Court of Appeal ruled that a lower court must reconsider the case.
Mastercard is moving into point of service financing after acquiring installment payments platform Vyze. Mastercard stock inched up Tuesday.
What to Expect from Visa's Q2 Earnings(Continued from Prior Part)Visa’s implied volatilityLet’s take a look at how Visa (V) stock might perform until its earnings release on April 24. The implied volatility in Visa fell by ~12.5 percentage
Mastercard has scooped up Austin fintech startup Vyze, which allows retail consumers to apply for a loan while standing in the checkout line. It had raised more than $48 million in venture capital.
What to Expect from Visa's Q2 Earnings(Continued from Prior Part)Key indicators Economic growth, consumer spending, retail sales, and revolving credit growth are some of the key indicators that impact card companies’ performance. Let’s take a
What to Expect from Visa's Q2 EarningsVisa Visa (V) is scheduled to report its second-quarter earnings on April 24. In the quarter ending December 31, Visa reported 7% sequential and 20% YoY (year-over-year) growth in its EPS. The strong earnings
It seems overly anxious to argue that American Express (NYSE:AXP) stock needs big first-quarter results. After all, American Express stock is doing just fine, even if it's been quiet.Source: Shutterstock AXP stock did dip sharply in December, but it's recovered those losses. Over the last year, American Express stock has gained nearly 17%, and it has more than doubled in the last three-plus years. * 7 Dental Stocks to Buy That Will Make You Smile Still, AXP earnings, due to be reported on Thursday morning, do look reasonably important. The outlook of AXP stock still seems somewhat skeptical, if not outright bearish. Investors are worried about its growth and market share. Its Q4 earnings were disappointing, but the market quickly moved on and kept pushing American Express stock higher. Investors may not be so forgiving if AXP earnings are disappointing again on Thursday.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAXP stock has twice failed to break through resistance at about $113, and the average Street price target for American Express stock of $118 suggests an increase of just 6% from its current level.A "beat and raise" Q1 would likely cause analysts to raise their price targets on AXP stock, leaving AXP well-positioned to reach new highs. If AXP earnings miss expectations, however, investors may have concerns about AXP's growth, causing American Express stock to at best trade sideways, as it has for nearly seven months now.As a result, Thursday's earnings do seem to be important for American Express stock, and investors should review them closely. Expectations for AXP EarningsWall Street is expecting a moderately slow start to the year for American Express. Analysts' consensus revenue estimate projects just 7.6% year-over-year, top-line growth, below the company's full-year guidance of 8%-10%. The company's margins are expected to be pretty much flat, and analysts on average expect its earnings per share to come in at $1.98, up 6.5% year-over-year.That, too suggests improvement over the rest of the year. Consensus for 2019 as a whole is modestly above the midpoint of the company's guidance, and projects 11% EPS growth.That's good news for AXP stock. AXP is not exactly in a "no-lose" situation, but analysts already expect its growth to accelerate as the year goes on. An in-line quarter, or even a modest miss, won't necessarily endanger that outlook.On the other hand, if AXP results solidly beat expectations, its outlook may get more interesting. Under that scenario, American Express will have started the year strongly, and will still have the same room for improvement during the rest of the year. Full-year growth estimates may well get raised, and the earnings multiple assigned to American Express stock can also rise. If that occurs, AXP can reach new highs. AXP Stock and the Post-Earnings CallThat said, the numbers aren't going to be the only aspect of the release to which investors will pay close attention. American Express re-upped its partnership with Delta Air Lines (NYSE:DAL) earlier this month. That was a big win for AmEx, which already had lost co-branding agreements with Costco Wholesale (NASDAQ:COST) and JetBlue Airways (NASDAQ:JBLU).But American Express had to pay up for the win. It was Delta stock that soared on the news, given that its payments from the deal will double in five years. The end results of that negotiation certainly suggests that American Express' edge over rivals Visa (NYSE:V) and Mastercard (NYSE:MA) has narrowed.So investors will have concerns about AXP's cost and market share Visa and Mastercard simply are growing faster than AmEx. And the main concern about American Express - and the reason AXP stock is so much cheaper than V and MA - is that at some point, its earnings simply are going to stall out. The entrance of Apple (NASDAQ:AAPL) into the space only adds to those worries.There likely will be some questions about the Delta deal and the kind of returns American Express expects on the resulting $3 billion-plus increase in annual spending. Analysts will want management's take on the Apple Card as well. AmEx needs to answer those questions well, and it needs to convince analysts and investors that its place in the credit-card industry is secure. Be Careful With American Express StockAll told, AXP's Q1 results do seem poised to change the outlook of AXP stock. A beat-and-raise quarter will suggest that AXP's growth remains intact, making the 12.4 forward, price-earnings multiple of AXP stock seem awfully cheap. Any weakness - whether in the company's results or its guidance - will cause investors to ask if fears about AXP's growth are reasonable.That doesn't mean AXP stock is going to move 10% or more on Thursday; AXP simply isn't that type of stock. Rather, AXP's Q1 earnings could shape how American Express stock trades over the next two months and determine whether AXP stock can finally break through resistance.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post AXP Earnings Look Key for American Express Stock appeared first on InvestorPlace.
Our call of the day, from a team of UBS strategists, says investors have been too negative when it comes to global growth expectations, and that’s good news for equities.
Starting today, that’s just what they’ll get as World Mastercard and World Elite Mastercard cardholders in the U.S. will begin to automatically enjoy new benefits and experiences with merchants they use regularly, including Lyft, Fandango, Boxed, and Postmates. The exclusive shopping and travel benefits World and World Elite cardholders already enjoy will continue.
PayPal and Venmo are both great services depending on what the customer wants. Here are the differences between the two popular money apps.
Mastercard Inc. is wading into the buy-now, pay-later movement as consumers adopt a more nuanced view of credit purchases.