Visa stock: buy or sell
Updated on:
Apr 22nd, 2021
2
Visa stock brief
- Visa closed on Wednesday at $227.45 after growing a 1.87%.
- From the chart point view, price is drawing a scaled uptrend since last January with higher tops and higher bottoms. This rally marked a 18.15% gain
- Barclays and Morgan Stanley posted bullish ratings for Visa on Tuesday, with an average target of $254.00
- Visa Inc. operates as a payments technology company worldwide.
Should I buy Visa stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $V stock a buy?
Currently, Visa stock matches 2 trading strategies:
Uptrend buy setup
Visa stock continues to trend higher since last January and has marked an amazing 18.15% gain. Price marked a pull back in this uptrend at $205.78 in late March, and since then it bounced up a 10.53%. Breaking out above $228.23 - it's last top - will be a good entry point if Visa resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $205.41
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $228.23 | $205.41 | 10.00% |
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that shares price doesn't have upper resistances, and usually it scales rapidly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Price is now at 0.34% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $228.23. The stop loss would be set at $205.41
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $228.23 | $205.41 | 10.00% |
Should I sell Visa stock?
"To sell or not to sell", if you are holding Visa stock?. Trading strategies allow us to avoid rash decisions based on our emotions or the buzz surrounding the market. We like very simple strategies to guide us on when is a good time to sell our shares. Be aware that these strategies are not intended for selling short $V stock
A guiding principle is that you must never mantain an open trade that leads to higher than expected losses at the time of purchase. When to sell shares always has to be ruled by the stop-loss (automatic or manual)
Is it time to sell Visa stock?
In the current situation of Visa there is not any eligible sell setup, so Visa stock holders with operations in green can keep their positions
Visa ratings
In the last month, 3 ratings were published for Visa. General sentiment is bullish, with 3 out of 3 publishing optimistic outlooks
| Brokerage firm | Rating |
|---|---|
| Apr 11th, 2021 | |
| Robert W. Baird | |
| Apr 20th, 2021 | |
| Barclays | Buy |
| Morgan Stanley | Buy |
Visa stock analysis
Since last January, Visa has been drawing an uptrend that so far marked a gorgeous 18.15%. Rising highs and lows can be seen easily on a chart and how price action offered very few entry points on the breakouts. Latest pullback was in late March, when price bounced at $205.78. Currently, it trades in a consolidation between its last top ($228.23) and its last bottom ($205.78)
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
The price is trading very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks
Relative strength index
When the fluctuates for so long below 70 and above 30, without any indication of overbought and oversold, the indicator gets of little use, and we are currently in one of these cases.
Visa stock price history
Visa went public priced at an adjusted price1 of $13.57 on Mar 2008. Since then, V stock has risen by 1,576.12%, with an average of 121.24% per year. If you had invested $1,000USD in Visa stock on the IPO, it would worth $16,761.24 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Visa stock
Nobody knows how much a stock will be priced in the future. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions release their price predictions based on the stock price action and the company fundamental data. Most of these predictions follow the publication of new financial information by the company, and usually. Again, these targets are not direct recommendations for small traders and must not be followed blindly.
The average price target for Visa stock calculated from the table below is $254.67. Visa closed at $227.45 on Wednesday, so the target price is forecasting an increase by 11.97%.
| Brokerage firm | Price target |
|---|---|
| Apr 11th, 2021 | |
| Robert W. Baird | $256.00 |
| Apr 20th, 2021 | |
| Barclays | $230.00 → $250.00 |
| Morgan Stanley | $253.00 → $258.00 |
Earnings and financials
Visa Inc. ($V) posted quarterly earnings of $1.42 per share last January, surpassing the analysts consensus estimate of $1.28 per share. This quarterly report means an earnings surprise of 10.94%. On the contrary, the company reported revenue for Q1 was $5.7 billion aligned with the market forecasts.
For comparison, the EPS for the same quarter last year was $1.46, so reported EPS is a reduction of -2.74%. Looking at turnover, figures sliced a -6.06% compared to $60.5B same quarter a year ago.Visa ($V) releases quarterly financial report on Thursday next week. Analysts estimate of $1.27, that is a 10.56% less than Q1.
Visa performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Visa ($V) | 8.80% | 10.60% | 15.50% |
Important note:
The thoughts written in this post are personal and not recommendations for you to buy or sell shares. The author of this report does not have any knowledge of the specific scenarios of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for educative purposes onlyVisa summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $223.31 |
| Close | $227.45 |
| Day range | $222.87 - $227.87 |
| Previous close | $223.28 |
| Session gain | 1.87% |
| Average true range | $4.36 |
| 50d mov avg | $215.97 |
| 100d mov avg | $211.81 |
| 200d mov avg | $205.70 |
| Earnings date | April 29th, 2021 |