Tag: Expensive

Visa Looks Expensive — Is It a Buy?

Visa (NYSE: V), the world’s largest electronic payments company, has seen its stock price move steadily upward over the past decade. Over the past 10 years, the stock has posted an annualized return of more than 28%, which is far better than the S&P 500‘s return over that span. This year, through the COVID-19 pandemic, it has continued to rise, up almost 9% year to date, and was trading around $204 per share at Wednesday’s close.

Visa has a price-to-earnings (P/E) ratio of about 39, which is higher than the S&P 500 average. The P/E ratio is a commonly used valuation metric that measures a company’s share price compared to its annual earnings per share. A high P/E ratio can be dangerous if the expectations don’t match the reality of the company’s future growth prospects.

Some investors may be wondering if Visa has grown too expensive, given its

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Digital Realty Has a Strong Business, but Shares Have Become Expensive

– By Nathan Parsh

Shares of Digital Realty Trust (NYSE:DLR) are down more than 9% over the last month, but have gained more than 31% since the last time I looked at the stock.

The real estate investment trust reported solid earnings results at the end of July. In this article, we will attempt to determine if investors should use the recent weakness to add Digital Realty to their portfolio.

Quarterly highlights

Digital Realty, which is one of the largest publicly traded technology focused REITs, reported second quarter earnings results on July 30. The company’s revenue increased 24% year-over-year to $993 million, which was $33 million higher than the average analyst estimate. Funds from operation, or FFO, declined 10 cents, or 6.1%, to $1.54, though this was a 6 cent beat of consensus estimates.

This was the first quarter that included the trust’s acquisition of InterXion, which was completed

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Mastercard Is at a Peak and Is Too Expensive to Buy Now

Mastercard (NYSE:MA) is up over 19% year-to-date and most of that gain came in the last month which showed a 16%+ rise. The bottom line now is that MA stock is simply too expensive.

Source: David Cardinez / Shutterstock.com

Most investors should probably wait for a pullback in the stock before taking a position in this fine company. At that point, there might at least be a notion of a margin of safety in buying it.

The stock’s rise in August came after Mastercard reported its second-quarter earnings on July 30. Analysts were expecting adjusted earnings per share (EPS) of $1.18, but the company outperformed with adjusted EPS of $1.36. However, this was still down 28% from last year.

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Looking at the Valuation Carefully

The company indicated in its presentation and its conference call that it would not

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