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.

v-finviz
Source: finviz.com
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
v-2019-11-28

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.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
10 most stable forex pairs to trade in 2021
If you are interested in forex but have never tried trading before, sooner or later, you come across the question of what currency pair is safe to trade so that you don’t lose half of your deposit on your first position. And the answer is as simple as can be, the safest currency pairs are the most stable ones. Read on to learn which currency pairs are the best to start your trading journey.
Read more
Best Gold Trading Tips For Beginners
Gold is one of the most popular assets traded worldwide by investors, funds, and speculators who aim to profit from the price fluctuations or stand up against inflation. Unfortunately, many market participants fail to catch the wave and take full advantage of what the gold market can offer due to the lack of knowledge and experience. Are you planning to become the next gold trader? Learn how to trade gold in the most profitable way.
Read more
How to Become a Successful Forex Trader in Malaysia
With broad access to online brokerage services, everyone can become a trader these days. However, few people actually find success in FX. The reason might be that many of those who try trading skip some essential steps or simply do things wrong. Learn about the best ways to become a currency trader in Malaysia from this article.
Read more