An 8-Day Winning Streak Has Visa Stock Up 8.3%
Visa (V) stock is on an 8-day winning streak, up 8.3% since the run began. That added about $56.3 billion to the company’s market value, which now stands at about $732.1 billion. The stock closed at $389.27 on Monday, October 12, its highest close of the past year.
How The Streak Stacks Up Against The S&P 500
Returns for V and the S&P 500 over the streak and the periods around it, all ending Monday, October 12 and including dividends:
| Return Period | V | S&P 500 |
|---|---|---|
| 1 Day | 1.0% | -0.1% |
| 8 Days (Current Streak) | 8.3% | 2.1% |
| 1 Month (21 Trading Days) | 5.1% | 2.0% |
| 3 Months (63 Trading Days) | 9.5% | 3.8% |
| Year To Date | 11.7% | 15.1% |
| 1 Year (252 Trading Days) | 13.1% | 17.3% |
How The Streak Compares With The Market
The market explains little of this: the S&P 500 gained 2.1% over the same 8 sessions, including dividends, against Visa’s +8.3%. 1 other S&P 500 stock is currently on winning streaks of 8 days or longer. Over the past three months the stock is up 9.5%, a window that includes the streak; over the other 55 sessions of that window it was essentially flat (+1.1%).
Do The Fundamentals Support The Run?
On the fundamentals, revenue grew 14.4% over the last twelve months, against a median of 10.2% for S&P 500 Financials stocks; its operating margin is 65.6%, versus a median of 26.9%; and the stock trades at 32.4 times trailing earnings against a median of 13.9. The numbers make the run harder to justify: a multiple well above the median. At this price, the stock is asking a lot of the business.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
Prefer the theme to the single name? A financials ETF like XLF holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.