Research Report for V as of 7/8/11 - Chaikin Power Tools

Page 1

VISA INC-A (V)

Price: $90.17

Industry: Business Service Chaikin Power Gauge Report | Generated: Fri Jul 08 09:32 EDT 2011 V VISA INC-A

$90.17

Power Gauge Rating

V - Neutral TM

The Chaikin Power Gauge Rating for V is neutral and reflects poor financial metrics, average earnings performance, very bullish price/volume activity and neutral expert opinions.

Financial Metrics

Price and volume activity for V is very bullish which is indicated by positive Chaikin money flow.

Earnings Performance

V's financial metrics are poor due to a high price to book value ratio.

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Neutral V VISA INC-A

July 07, 2011

TM

Chaikin Sentiment Gauge for V is neutral. Stories concerning V have a balanced or neutral sentiment.

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Bearish

LT Debt/Equity Ratio

V's financial metrics are poor. The company may be overvalued and has relatively low revenue per share.

Price to Book Value

The rank is based on a low long term debt to equity ratio, high price to book value ratio, high return on equity and high price to sales ratio.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

2.77

Price/Book

2.87

Return on Invest

12.5%

LT Debt/Equity

0.00

Price/Sales

9.28

Return on Equity

12.5%

Earnings Performance

TTM

Earnings Performance Rating

Neutral

Earnings Growth

V's earnings performance has been neutral. The company has a stable 5 year earnings trend and is priced relatively high compared to next year's projected EPS.

Earnings Surprise

Earnings Trend

The rank is based on a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

EPS Estimates

09/06

09/07

09/08

09/09

09/10

Revenue(M)

-

3,590.00

6,263.00

6,911.00

8,065.00

Rev % Growth

-

-

74.46%

10.35%

16.70%

EPS

-

-

$0.96

$3.11

$4.01

EPS % Growth

-

-

-

223.96%

28.94%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$1.06

$1.23

+0.17

Quarterly EPS Yearly EPS Factor

$4.01

$4.92

+0.91

Actual EPS Growth

Est EPS Growth

Change

33.83%

16.91%

-16.92

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$1.20

$1.23

$0.03

1 Qtr Ago

$1.21

$1.23

$0.02

2.50

09/09

$0.74

$0.71

$0.97

$0.69

$3.11

1.65

09/10

$1.03

$0.96

$0.97

$1.06

$4.02

2 Qtr Ago

$0.94

$0.95

3 Qtr Ago

$0.93

$0.97

$0.01

1.06

09/11

$1.23

$1.24

-

-

-

$0.04

4.30

Fiscal Year End Month is September.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Very Bullish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for V is very bullish. V is experiencing sustained buying and has a rising price trend.

Price Trend

The rank for V is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether V is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Volume Activity

Factor

Value

Factor

52 Week High

90.15

% Change Price - 4 Weeks

17.95%

Average Volume 20 Days

9,352,675

52 Week Low

65.48

% Change Price - 24 Weeks

27.53%

Average Volume 90 Days

6,078,249

% Change Price - 4 Wks Rel to S&P

12.35%

Chaikin Money Flow Persistency

% Change Price - 24 Wks Rel to S&P

20.65%

% Change YTD Rel S&P 500

17.34%

Expert Opinions

Value

Factor

Value

70%

Expert Opinions

Neutral

Earnings Estimate Revisions

Expert opinions about V are neutral. Shorting of V is low and analysts's opinions on V have been more negative recently.

Short Interest

Insider Activity

The rank for V is based on analysts revising earnings estimates upward, a low short interest ratio, pessimistic analyst opinions and price strength of the stock versus the Business Service industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

1.22 1.23 Current

Current FY

4.92

Analyst Recommendations

7 Days Ago % Change 1.22 1.23

0.00% 0.00%

30 Days Ago % Change 4.92

0.00

EPS Estimates Revision Summary

Factor Mean this Week Mean Last Week

Value

Strong Buy 0.00

Last 4 Weeks

Down

Up

Down

Curr Qtr

6

1

6

1

Curr Yr

8

1

9

1

Next Qtr

8

3

8

4

Next Yr

8

5

7

6

Strong Buy

Change Mean 5 Weeks Ago

Last Week Up

Strong Buy

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The Company & Its Competitors

News Headlines for V

V's Competitors in Business Service Company

Power Gauge

Visa Launches Travel-Themed Marketing Campaign with New Facebook Application and National Promotion - May 23, 2011

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

V

33.83%

16.91%

37.72%

1.08

20.58

8,065

MA

14.46%

17.18%

34.07%

1.09

21.44

5,539

ADS

14.17%

15.00%

8.14%

0.98

16.50

2,791

FIS

61.33%

13.20%

7.43%

1.03

15.13

5,270

FISV

1.30%

12.50%

11.67%

1.16

15.83

4,133

Visa deposits $400M in escrow account - Mar 28, 2011

HPY

17.72%

16.33%

1.46%

1.28

25.49

1,864

Visa PlaySpan Merger 03 01 - Mar 1, 2011

LPS

3.62%

9.33%

11.81%

0.80

5.68

2,456

EFX

5.50%

10.00%

14.15%

1.43

14.98

1,860

NV Economic Forum chairman files for bankruptcy - May 21, 2011 Summary Box: Visa 2Q profit jumps 24 percent May 5, 2011

Company Details

Company Profile

VISA INC-A P.O. BOX 8999 SAN FRANCISCO, CA 94128-8999 USA Phone: (415) 932-2100 Website: http://http://www.corporate.visa.com Full Time Employees: 6,800 Sector: Business Services

VISA operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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