On Jun 26, 2013, Zacks Investment Research lowered
) by a notch to a Zacks Rank #3 (Hold).
Why the Downward Movement?
Recently, the positive momentum in Visa's earnings estimates
lost steam. The Zacks Consensus Estimate for the company's 2013
earnings increased only 2 cents to $7.48 per share over the last
30 days, while it had gained 11 cents in the previous 30-day
Moreover, only 2 out of 24 analysts revised their estimates
for Visa upward in the last 30 days, while 1 analyst revised it
downward. In comparison, 21 out of 24 analysts revised their
estimates in the last 60 days. These figures clearly indicate the
slowdown in the positive momentum of the earnings estimate.
Moreover, Visa's growth is expected to remain sluggish in 2013
compared to 2012 and 2011. This is reflected in its top-line
growth guidance of low double digits and lower bottom-line growth
as compared with fiscal 2012. High competition, increasing
regulatory compliances and higher-than-expected litigation
charges are other headwinds.
However, despite these negatives, we are not bearish on Visa
due to its strong brand value, strong balance sheet, efficient
capital deployment through acquisitions and alliances, and the
increasing demand for electronic payment services. Moreover, Visa
continues to grow organically through a healthy product boutique
and huge network.
Other Stocks to Consider
Other financial transaction services companies worth
) - Zacks Rank #1 (Strong Buy),
) - Zacks Rank #2 (Buy) and
Fidelity National Information Services, Inc.
) - Zacks Rank #2 (Buy).
EQUIFAX INC (EFX): Free Stock Analysis Report
FIDELITY NAT IN (FIS): Free Stock Analysis
VISA INC-A (V): Free Stock Analysis Report
VANTIV INC-A (VNTV): Free Stock Analysis
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