Nobody can deny that V has a great business - through it's VisaNet electronic payments network, it processes over 65,000 transactions per second across 200+ countries, but it has zero credit default risk because it gets paid for each transaction but does not manage the debt. I've held positions in V for many years, and it's been a great long-term play.
My question is, what should someone do with V right now? It's up around 4.25% the past month and sits at an all-time high. It's earnings call is scheduled for Tuesday, October 27.
Fundamentalists might say it's too richly valued with a P/E ratio of 32.80, and that investors should trim now and wait for a pullback before buying additional shares. Chartists might say it's a great entry point because it's just breaking out from a 2-year cup-and-handle pattern.
I tend to side with the chartists on this one. What say you?