Seven Alpha Algorithm Strategies Bet on a Payment-Processing Giant

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

We continue to see a lot of large-cap blue-chip recommendations being generated by the Alpha Algorithm.

That’s because U.S. markets in 2017 have been driven mostly by household names. In fact, the S&P 500’s 4.4% rise this year has been driven by 50 stocks, which account for more than 80% of that gain.

The top 10 stocks account for roughly one-half of the S&P 500’s rise. The names on this list of top 10 will be familiar to you.

Leading the list are Apple (AAPL), Facebook (FB), Amazon (AMZN), Alphabet (GOOGL) and cigarette maker Philip Morris International (PM). The next five include Johnson & Johnson (JNJ), Visa (V), Microsoft (MSFT), Oracle (ORCL) and Procter & Gamble (PG).

Your Alpha Algorithm portfolio currently includes seven out of the top 10. It also previously held number eight, Philip Morris International (PM).

This week, the Alpha Algorithm adds a ninth to this illustrious list.

Headquartered in San Francisco, California, Visa Inc. (V) is a payments technology company which provides its services under the Visa, Visa Electron, Interlink and PLUS brands. (Disclosure: I am a long-time holder of Visa, Inc. (V) in my personal investment portfolio.)

V 4-20

Visa Inc. (V) versus the S&P 500 year to date.

Seven Top Investment Strategies Betting on Visa Inc. (V)

1. High Quality Stocks

This is a U.S. stock that exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.

2. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

Exclusive  Daily Data Flow: Stocks Steady as Buffet Buys Heinz; Airline Merger Reduces Flight Options; Discouraging Data Pushes Euro Down

3. Morningstar’s Moat

The stock is part of a strategy that tracks an equal-weighted index of 20 companies that Morningstar determines to have the highest fair value among firms with a substantial competitive advantage, or “moat.”

4. Value Tilt (TILT)

Selected using a multi-factor modeling approach, the stock is a value stock designed to enhance portfolio risk/return characteristics.

5. Hedge Fund Alpha

Based on publicly available disclosures, successful hedge fund managers are investing in the stock.

6. Billionaire Bet

The stock is one of 30 U.S. companies tracked in an equal-weighted index selected from the portfolios of 10 asset managers with a personal net worth of at least $1 billion.

7. Goldman Sachs Hedge Fund Index

The stock is part of the Goldman Sachs Hedge Industry Index, which tracks an equal-weighted index of the 50 most-frequently held U.S. companies selected from the portfolios of hedge funds.

Recommendation

Buy Visa Inc. (V) at market today.

Place your initial stop at $85.00.

Options

If you want to play the options, I recommend the V June $90.00 call options (V170616C00090000), which last traded at $2.86 and expire on June 16.

Portfolio Update

VAA 4-20

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

Investment expert Jim Woods shares his opinion on why Donald Trump's recent order to buy American may not be ideal.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE