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Guy Adami: If Market Holds 1305 'Buy' This Stock's Dip

”If the market holds 1305, this is a stock I’d buy on the dip.” That’s the trade from Guy Adami after our Negotiator parsed through earnings from Visa .

"Valuations are fair and it's sold off enough from its 52-week high that I think you should take a look at it," he says.

The latest results from the credit card giant showed quarterly profit rose by 40 percent largely due to a higher volume of global payments and a gain from revaluing its Visa Europe put option.

The firm also announced plans to buy back $1 billion in Class A common shares, under a board authorization that expires in July 2012.

Looking at the numbers a little more closely, the credit card payment processor reported fiscal third-quarter net income of $1 billion, or $1.43 per Class A common share, up from $716 million, or 97 cents per share, a year ago.

Excluding the one-time, noncash gain on its Visa Europe put option, Visa earned $883 million, or $1.26 per share.

Analysts estimated the credit card payment processor would report net income of $1.23 per share, according to Thomson Reuters I/B/E/S.

Net operating revenue increased 14 percent to $2.3 billion from a year ago.




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Trader disclosure: On July 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (APPL); Seymour owns (BAC); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU) ; Cortes owns U.S. Treasuries; Cortes is short (LVS); Cortes is short (LULU); Cortes is short (IYT); Cortes is short the Euro; Cortes is short Copper; Cortes is short Corn; Stutland Owns (GOOG) and short (GOOG) calls; Stutland owns Australian foreign debt; Stutland is short (V) puts and owns (V) calls; Stutland is short (GLD) puts, long (GLD) call spread, and owns the (GLD); Stutland owns (TLT), is short (TLT) calls, and short (TLT) puts; Stutland owns U.S. Treasuries; Iuorio is long (TLT)

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