|Bid||0.00 x 1000|
|Ask||0.00 x 900|
|Day's Range||130.93 - 132.10|
|52 Week Range||92.80 - 132.50|
|PE Ratio (TTM)||33.21|
|Earnings Date||Jul 18, 2018 - Jul 23, 2018|
|Forward Dividend & Yield||0.84 (0.64%)|
|1y Target Est||140.09|
The news that major issuers Visa and Mastercard were banning the use of their networks to pay for cryptocurrencies and fund e-wallets sparked controversy in the ecosystem. The processors’ decision meant that users can no longer fund their crypto wallets via credit card, and many suspected it would impact card issuers as more people entered the crypto market. A recent earnings call by Mastercard revealed the company had experienced slight losses since it announced the ban in the first quarter of 2018.
The company’s competitors Visa (V), PayPal Holdings (PYPL), and Discover Financial Services (DFS) have PEs of 25.96x, 31.78x, and 9.56x, respectively, on a next-12-month basis. Mastercard has higher valuations primarily due to the positive outlook it has for the remainder of 2018. Moving forward, Mastercard will likely be positively impacted by the rising trend in digital transactions.
As we’ve discussed in this series, this year, Visa (V) is expected to be boosted by its business fundamentals, increased payment digitalization, and higher oil prices. Of the 36 analysts covering the payment giant’s stock, 15 (41.7%) recommend “strong buy,” 17 (47.2%) recommend “buy,” and four (11.1%) recommend “hold.”
A new fight is brewing between merchants and card companies. Representatives of large retailers including Walmart Inc. and Home Depot Inc. met with federal regulators this week to raise concerns about a new online payment initiative that Visa Inc. and Mastercard Inc. are preparing to roll out, according to people familiar with the matter. Retailers’ main concern with combining the buttons is that merchants won’t be able to route their debit-card transactions to lower-cost networks.
Even though digital transactions take less time to complete, many economies still rely on cash for the execution of transactions.
Wall Street analysts have given Mastercard (MA) an average EPS estimate of $1.5 for the second quarter, reflecting a year-over-year rise.
Prices have reached a Point and Figure price target so let's check the charts and indicators again. In this daily bar chart of V, below, we can see that prices are above the rising 50-day moving average line and the rising 200-day line. It looks like volume has diminished the past two months but the daily On-Balance-Volume (OBV) line has continued to rise to new highs.
Mastercard (MA), a company in the business of providing electronic payment solutions, reported strong numbers in the first quarter. Mastercard and its peers (XLF) Visa (V), Discover Financial Services (DFS), and American Express (AXP) benefit from strong spending trends, as they increase the number of transactions and improve the companies’ revenues. In a recent conference, Mastercard’s top management stated that the first quarter had been primarily aided by share growth as well as cross-border business.
While Visa’s (V) NTM (next-12-month) price-to-book ratio is 7.4x, competitors’ average is 8.0x. Peers Mastercard (MA), Discover Financial Services (DFS), and Ally Financial (ALLY) have NTM price-to-book ratios of 21.0x, 2.3x, and 0.81x, respectively.
With the close of its Series D financing, Miami-based YellowPepper has raised another $12.5 million. The financial technology firm, which has garnered more than 60 clients in six countries since its founding in 2004, touted payments giant Visa Inc. (NYSE: V) as being among the investors in its latest funding round. With the new capital injection, YellowPepper aims to expand its digital finance platform and accelerate its growth in Latin America.
Visa (V) is expected to post EPS (earnings per share) of $1.11 in the third fiscal quarter (ending in June), boosted by strong business fundamentals. As we’ve discussed, the performance of payment technology companies (XLF) such as Discover Financial Services (DFS), Mastercard (MA), and American Express (AXP) is affected by the overall economy and client spending.
Visa (NYSE:V) today announced a strategic investment in YellowPepper, a mobile payments pioneer in Latin America, to help accelerate innovation in digital payment technology. The first of its kind for Visa in the region, the strategic investment reinforces a shared vision for increasing usage of mobile payments throughout Latin American and the Caribbean.
As we’ve discussed, payment technology companies such as Visa (V), Mastercard (MA), American Express (AXP), and Discover Financial Services (DFS) benefit primarily from increased spending, which rises with economic growth. As US consumer spending is expected to rise, Visa could be due to benefit.
Of the companies that saw big financial benefits from tax reform, several decided to share the wealth with their employees.
At the J.P. Morgan Global Technology, Media and Communications Conference, Visa (V) shared positive views on its European integration, which it stated has been proceeding rapidly. The company has also been focusing on its push payment facility, Visa Direct. Visa’s payment volume rose substantially YoY (year-over-year) in fiscal Q2 2018, by 11% on a constant-dollar basis, which could boost its service revenue in fiscal Q3 2018.
At the J.P. Morgan Global Technology, Media and Communications Conference, Visa (V) stated it would be targeting the US market’s significant untapped opportunities, which could boost growth. By targeting small merchants and increasing its merchant base, the company could see long-term growth.
Payment giant Visa (V) benefits from higher consumer spending due to lower unemployment, positive economic momentum, digital technology expansion, and higher prices. Higher oil prices and inflation help payment processors such as Visa and Mastercard (MA), boosting their financials.
Investing in “sustainable” companies is helping The Brown Advisory Large-Cap Sustainable Growth fund (BAWAX) deliver big returns, but you won’t find windmill and solar panel makers in this portfolio. Under the guidance of co-managers Karina Funk and David Powell, the fund delivered a 28% return in 2017, outperforming the S&P 500 Index’s 19% advance. “We look for compelling customer value propositions across the entire economy,” Funk explains in the above video.
As with any revolutionary technology, it’s easy to make a long list of both the pros and cons of bitcoin. Bitcoin and other cryptocurrencies have already produced an untold number of millionaires. At this time, however, the balance of bitcoin’s pros and cons favors the downside.
The digital currency industry seems to be taking on the mainstream financial system head-on. Modern Finance Chain has developed a new system meant to fill the gap between crypto users and merchant establishments like Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA). MF Chain offers a solution meant to solve several problems in the commerce industry. The […] The post Modern Finance Chain Launches Service To Rival Visa/Mastercard Payments appeared first on Market Exclusive.
Stocks are surging out of the gate Monday as investors celebrate China trade war tensions easing. The immediate gains traders are waking up to are all the excuse needed to toss out a few options trading picks. I’ve scoured my watchlist and found the best trades for the week.