Visa
V
Earnings Preview:
The company is expected to report a gain of $1.97/share on $7.78 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.05/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
The company has enjoyed healthy double digit sales and earnings growth in each of the past four quarters helped by strong consumer spending. Annual earnings have grown nicely since 2020 and the company is expected to continue to grow in 2023, 2024 by double digits! That is very encouraging considering some of the macro recessionary fears that exist today. It is very encouraging to see Return On Equity above 40% in each of the past three quarters.
A Closer Look At The Technicals:
Technically, the stock bottomed in October 2022 and is up over 33% since then. The stock is trading near multi-month resistance and the bulls want to see it gap higher after earnings are announce. On the other hand, the bears want to see the stock fall sharply after earnings are announced.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: Visa has been featured in the FindLeadingStocks.com service.
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