The Top Stock to Capitalize on Consumer Spending

Last week’s US jobs payroll report and data from the US Bureau of Labor Statistics showed that the US consumer has a lot going for them.

The number of new jobs (with seasonal adjustments) was up but not as much as some might have liked. But more importantly, the unemployment rate dropped to a low not seen in a while at only 4.2%. 

Meanwhile, the participation rate increased to 61.8%. This means more folks are in the job market, and fewer are in need of a job.

Then, wages are up. The annual rate of wage growth was reported up by 4.8%. This again is good for households and future spending. More jobs, more workers seeking jobs and more pay is all great news for consumer spending in the weeks and months to follow.

And in turn, further proof that consumers are willing and able to spend includes the recent Bloomberg/Langer Consumer Comfort Index that last week hit 51.00, a good level showing confidence and ability to spend.

This shows up in the most recent retail sales for the US that for November climbed by 1.7%, showing that spending is on a roll.

At Josh’s Top 5, we are following all of this and have a trade in the making in a leading behind the scenes consumer spending stock.

This continues our successes in our stock trades inside Top 5 with the average return on our hit stock trades at 7.35% for a total gain for hit trades running at 566.12%. 

So, for weekly hit stock trades and stock option alternatives, these returns add up and can compound to amount to four-figure returns over the year.

The Consumer Spending Leader

Visa Inc. (V) is the ubiquitous global payments and payment processing company that is utilized around the globe by banks, financials and other companies to process retail and other payments both in stores and online.

It makes for a great behind the scenes company that cashes in on each and every consumer transaction that is used utilizing its network, again around the US and the globe.

Revenue continues to climb with the annual gain running into the double-digits. And it makes the most of that revenue with operating margins that are nearly as good as it gets at over 65%.

And in turn, it delivers a return on shareholders’ equity of over 37%, making for plenty of profits for its stockholders.

The stock was running strongly until recently as concerns crept into the markets over the continued success of consumers, including the recent flare up in the virus mess.

But this sets up a potential trade opportunity for the stock that is now cheaper and may be reaching a great new entry level for a buy for a good gain opportunity.

Here is our latest analysis for the stock trades and how it sets up for this week.

And here’s the one-hour trading view on Visa.

Visa is hitting a daily up trendline. We should monitor this stock to see if we can get a bullish reversal. 

The market is pretty oversold at the moment. We will be looking for a short-term limit of $205.28 if we can get a bullish reversal.

We will need the market to break the down trendline and enter into the buy zone, which is above the downtrend line. 

We’ll be looking for a long idea around $198.00, but the market will need to be in the buy zone above the downtrend line.

The trade if it comes into play at around $198.00 and hits the target of $205.28 would equate to a gain of 3.68%.

Keep on trading,

Josh Martinez

Editor, Top 5

P.S. This is a great pick, but it’s still only one out of my Top 5. To find out about the rest of the trades I’m recommending, complete with specific entry and exit points, you need to click here and join me on the Top 5 journey…