The shift from analog to digital transactions has been rapid in the last decade and COVID-19 has only accelerated this movement.
One of the companies that takes full advantage of this transition is Visa (NYSE: V). They already have a massive customer base, which means they will automatically be part of the accelerated growth (and revenue) as they move from cash to digital. And the proof is in the pudding.
Over the past ten years, Visa’s share price has risen dramatically + 1000%. In the last 3 years alone, Visa has reported a profit margin close to 50%, which means that for every dollar of sales generated, the company has a net profit of $ 0.50.
Compared to money-making machines like Apple or Google, both have only a profit margin of about 20%, it’s not hard to see why Visa shares have skyrocketed in years.
A troubled company like Visa must go wrong. Therefore, for investors looking for stable growth over time, we believe that a stock like Visa would be a good addition to a long-term portfolio.
Oh, and we forgot to mention that Visa has a respectable dividend of .51%.
Although long-term trends are seldom a straight line, and stronger setbacks should be expected periodically. Investors who want to start building a long position in Visa are likely to be patient and expect a solid correction in stocks.
Based on long-term price action, we believe the key support area between $ 210 and $ 220 is a good price range to look for possible buying opportunities with more aggressive traders looking for a price at $ 240 lower.
Positioning of options
There are currently about 325,000 calls and 252,000 positions in the options market universe, so calls are heavy. The largest delta strike has not been until January 2022 and is above the current price, which favors a solid outlook for the rest of the year.
THE FULL REVELATION: Chris Capre does not currently have any stock or options position in V, but has pending limit orders in V. For more information on The trades of Chris i positions, you can access through Negotiation masterclass where he shares his live business, additional investment ideas and daily market analysis.
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