Visa Inc. (V) Shares Have the Potential for Further Growth

Visa Inc., #V [NYSE]

Finance, Credit Services, USA

Visa Inc. is an American multinational company that provides services to consumers, commercial organizations, banks and government agencies for the implementation of electronic payments.

Financial indicators of the company:
  • Index – DJIA, S&P 500;
  • Market Cap – 401.66 B;
  • Income – 11.65 B;
  • P/E – 36.13;
  • Beta – 0.93;
  • ROA – 16.40%;
  • Avg Volume – 7.26 M;
  • ATR – 2.64.

The investment idea is to capitalize on the continuation of the global uptrend amid strong fundamental indicators.

Analytical review:

1. Optimistic corporate report. The issuer continues to publish positive financial statements. Last quarter, revenue and earnings per share (EPS) growth counted to 11% and 14%, respectively, compared to last year. Since the beginning of this year, payment volumes have grown by more than 65%. The company continues to implement a share buyback policy, which provides additional support. Over the past five years, Visa Inc. spent $31.9 billion and bought back 20% of its shares. At the beginning of the year, the company announced a buyback plan of $8 billion. In a recent report for the 3rd quarter, the financial conglomerate announced an increase in dividend payments by 20% to 30 cents per share. Visa Inc. plans to expand the list of services for existing customers. The company resumed operations with Bank of America in the USA and BBVA in Europe.

2. Support for institutional funds. At the end of October, investment company BMO Capital Markets confirmed its forecast for #V share prices to $231-$239.

Analysis of financial indicators and company multiples indicates the possibility of further growth of the issuer.

Trading Recommendations for Visa Inc. Shares
  • Support Levels: 183.00, 182.00, 180.50
  • Resistance Levels: 184.50, 186.60

The bullish sentiment prevails in the shares of the company. At the moment, #V quotes are testing historical highs. The local resistance is the 184.50 mark. The level of 182.00 is already a "mirror" support. Indicators signal the power of buyers:

  • - The price has fixed above 50 MA and 100 MA;
  • - The MACD histogram is in the positive zone.

We recommend opening positions from the key levels.

If the price fixes above 184.50, an upward trend is expected to continue. The immediate goal for profit taking is 186.00. When tracking positions, we recommend using a trailing stop.

Alternative option. If the price fixes below the support level of 182.00, it is necessary to look for entry points to the market to open short positions. The movement is tending to 180.00-178.00.

by JustForex, 2019.11.29

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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