Warren Buffett, also known as the ‘Oracle of Omaha,’ is one of the most prolific investors of the 21st century. Buffett owned Berkshire Hathaway’s Inc. (BRK.A) cash pile reached new highs to $149.20 billion in the…
third quarter, topping the record set in early 2020.
The consumer price index surged 6.2% last month, marking its biggest gain in 30 years. Market bull Jeremy Siegel has warned that a market correction may be imminent if another hot inflation report comes in. Moreover, the concerns over the global economic recovery due to the emergence of the omicron coronavirus variant could keep the market under pressure.
As of September 30, Buffett held 9.56 million shares of Visa Inc. (V – Get Rating), 400 million of The Coca-Cola Company (KO – Get Rating), and 61.79 million shares of The Kroger Co. (KR – Get Rating). Given these companies’ strong fundamentals and significant market share, they might be solid bets to hedge your portfolio against the market correction.
V is a payments technology company operating worldwide. The company helps in digital payments among consumers, businesses, and government entities, offering services such as VisaNet, its transaction processing network.
On November 9, V launched Visa Eco Benefits, a sustainability-focused package-benefit aiming to bring sustainable commerce and climate action in payments. About this launch, Charlotte Hogg, Executive Vice-President and Chief Executive Officer, Europe, Visa, said, “At Visa, we recognize the urgency of climate change and are committed to a new era of sustainable and inclusive economic growth.”
On November 4, the company announced that its global payment and fraud-management platform, Cybersource, had joined the International Air Transport Association (IATA) Financial Gateway to manage payment, fraud, and revenue maximization. This venture might prove to be profitable for the company.
V’s net revenues increased 28.6% year-over-year to $6.56 billion in the fiscal fourth quarter ended September 30. Operating income rose 37.3% from the prior-year quarter to $4.32 billion. Non-GAAP net income and non-GAAP EPS improved 42.2% and 44.6% from the same period last year to $3.52 billion and $1.62, respectively.
Street EPS estimate for the current year (fiscal 2022) of $7.06 reflects a rise of 19.5% from the prior year. Likewise, Street revenue estimate of $28.25 billion for the ongoing year indicates a 17.2% year-over-year improvement. V has topped consensus EPS estimates in each of the trailing four quarters, which is impressive.
Over the past five days, the stock has gained 1% to close Friday’s trading session at $197.65.
V’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
V has a Momentum, Sentiment, and Quality grade of B. It is ranked #8 out of the 53 stocks in the Consumer Financial Services industry.
To see the additional POWR Ratings for Growth, Value, and Stability for V, click here.
This global non-alcoholic beverage manufacturer needs no introduction. The company sells its beverages under popular brand names such as Coca-Cola, Sprite, Fanta, Dasani, Minute Maid, and POWERADE.
On November 8, KO named communication company WPP plc as its Global Marketing Network Partner. The company expects WPP to play a…
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