Visa stock: buy or sell?

V stock price: $175.23 -2.70% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

4

Shares of Visa ended today at $175.23 and dropped a shocking -2.70%.

Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.

Should I buy Visa stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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.

None of our preferred buy setups matches with Visa stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean V will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Visa stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we detected 15 ratings published for V stock in the last month.

The general sentiment of these ratings is bullish for V stock, with 12 positive ratings.
Is V a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-1UBS Groupn/aNeutral
2019-7-3Wedbushn/aOutperform
2019-7-24SunTrust Banksn/aBuy
2019-7-24Raymond Jamesn/aOutperform
2019-7-24Raymond Jamesn/aOutperform
2019-7-24Nomuran/aBuy
2019-7-24KeyCorpn/aOverweight
2019-7-24JPMorgan Chase & Co.OverweightNeutral
2019-7-24GuggenheimBuyPositive
2019-7-24Goldman Sachs Groupn/aBuy
2019-7-24Credit Suisse Groupn/aBuy
2019-7-19Barclaysn/aOverweight
2019-7-18Jefferies Financial Groupn/aBuy
2019-7-11Morgan Stanleyn/aOverweight
2019-7-11Deutsche Bankn/aBuy

Visa stock analysis

Daily outlook

Visa shares dropped -2.70% to $175.23 today.

Visa shares dropped -2.70% to $175.23 today. From a daily perspective, V is in a short term uptrend after plotting its last bottom ($172.91, on Aug 14th) higher than the previous bottom, and its last top ($182.33, yesterday) also over the previous top. Now trading in between its last bottom and last top V might consolidate in a plain range, waiting to break out over $182.33 or down under $172.91. In this session, Visa stock crossed down the SMA50d line. If you are using SMA50d line as stop loss trigger, double check your position in this stock. On Jul/29, V hit a new all time high, pushing higher than on Jul 25th tops. Check different trading setups that use ATHs as triggers.

V stock chart (daily)

Weekly outlook

Visa shares decreased -1.68% this week, ending at $175.23.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $183.80 resistance. Not so far away is the last all-time high Visa marked late July. Since early April when SMA20w and SMA40w crossed up, V price gained $19.50 per share (12.52%). Since price and SMA40w lines crossed up early January, V climbed $42.21 (31.73%).

V stock chart (weekly)

Visa stock price history

Visa stock went public on March 19th, 2008 with a price of $11.791. Since then, V stock surged a 1,386.30%, with an average of 126.00% per year. If you had invested right after V's IPO a $1,000 in Visa stock in 2008, it would worth $13,863.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Visa stock historical price chart

V stock reached all-time highs on July/29 with a price of $183.80.

Visa stock price target is $198.20

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 14 price predictions for Visa stock:
V stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-1UBS GroupRaises Target$183.00$187.002.2%
2019-7-24SunTrust BanksRaises Targetn/a$205.00-
2019-7-24Raymond JamesReiterates$177.00$193.009%
2019-7-24Raymond JamesRaises Target$177.00$193.009%
2019-7-24NomuraRaises Target$178.00$204.0014.6%
2019-7-24KeyCorpReiterates$190.00$195.002.6%
2019-7-24JPMorgan Chase & Co.Raises Target$166.00$182.009.6%
2019-7-24GuggenheimRaises Target$178.00$190.006.7%
2019-7-24Goldman Sachs GroupSet Price Targetn/a$202.00-
2019-7-24Credit Suisse GroupSet Price Targetn/a$203.00-
2019-7-19BarclaysRaises Target$181.00$195.007.7%
2019-7-18Jefferies Financial GroupReiterates$190.00$210.0010.5%
2019-7-11Morgan StanleyRaises Target$175.00$191.009.1%
2019-7-11Deutsche BankReiterates$177.00$225.0027.1%
(in average)$179.30$198.2011.0%
The price target for Visa stock is $198.20, moving in a range between $225.00 and $182.00. In average, analysts' outlook on V price forecast is positive, upgrading the prediction by a 11.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on April, Visa jumped a very good 8.72%. As soon as we get its posted EPS from the earnings report, we will extend this report.
V earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.86n/a
2017-Q32017-10-250.850.95.9%
2017-Q42018-02-010.991.089.1%
2018-Q12018-04-251.011.119.9%
2018-Q22018-07-251.081.211.1%
2018-Q32018-10-241.21.210.8%
2018-Q42019-01-301.251.34.0%
2019-Q12019-04-231.24n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an astounding growth of 12.26% to $20,609.00 million USD. Aligned with this, its profit margin (compared to sales) climbed to 49.98%, that is $10,301.00 million.

Visa presents anual results in September, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Visa TTM sales up to March 2019 were $21,674.00 and earnings $11,128.00 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Visa business evolution since September 2018: Annual turnover up to March, compared to lastest yearly report, jumped a fine 5.17%. Regarding profit margin, Visa appreciated 1.36% to 49.98%

V annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$11,780 M-$4,960 M42.1%-
2014$12,700 M7.81%$5,420 M42.7%9.27%
2015$13,880 M9.29%$6,328 M45.6%16.75%
2016$15,082 M8.66%$5,991 M39.7%-5.33%
2017$18,358 M21.72%$6,699 M36.5%11.82%
2018$20,609 M12.26%$10,301 M50.0%53.77%
TTM $21,674 M5.17%$11,128 M51.3%8.03%

Quarterly financial results

Visa posted $5,494.00 million in revenues for 2019-Q1, a -0.22% less compared to previous quarter. Reported quarter earnings marked $2,977.00 M with a profit margin of 54.19%. Profit margin remained constant a 0.12% compared to previous quarter when profit margin was 54.07%. When comparing revenues to same quarter last year, Visa sales marked a more than good increase and soared a 8.30%.
V quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$4,570 M-$1,990 M43.5%-
2017-Q3$4,860 M6.35%$2,070 M42.6%4.02%
2017-Q4$4,862 M0.04%$2,522 M51.9%21.84%
2018-Q1$5,073 M4.34%$2,605 M51.4%3.29%
2018-Q2$5,240 M3.29%$2,329 M44.4%-10.60%
2018-Q3$5,434 M3.70%$2,845 M52.4%22.16%
2018-Q4$5,506 M1.32%$2,977 M54.1%4.64%
2019-Q1$5,494 M-0.22%$2,977 M54.2%0.00%

Visa ownership

When you are planning to invest in shares of a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Visa, 0.10% of all outstanding shares are owned by its staff.

Bearish positions for V stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related companies:

VEBAYFISMAUEPS
Market cap$304.9 B$33.7 B$45.7 B$289.2 B$185.8 M
Total shares1,740.0 M871.5 M331.0 M1,030.0 M56.8 M
Float shares1,720.0 M790.0 M610.5 M996.6 M42.7 M
  - Institutional holdings (%)94.9%88.0%92.3%78.0%62.8%
  - Insider holdings (%)0.1%5.3%0.6%11.2%19.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Visa summary

Friday, August 23rd, 2019
Open$179.55
Close$175.23
Day range$174.24 - $180.50
Previous close$180.09
Session gain-2.70%
Average true range$3.79
50d mov avg$176.71
100d mov avg$169.29
200d mov avg$155.11
Daily patternlt06a
Weekly pattern lb02a

Visa performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Visa against eBay, Fidelity National Information Services, Mastercard, Net 1 UEPS Technologies and WEX in the following table:
Stock3m6m12m
VVisa7.89%20.48%22.32%
EBAYeBay7.53%4.00%12.93%
FISFidelity National...16.53%29.63%28.27%
MAMastercard11.78%26.05%34.82%
UEPSNet 1 UEPS Techno...-13.49%-20.82%-62.88%
WEX 1.49%13.99%6.16%

Visa competitors

One check before trading any stock is to review a list of its competitors, in this case for Visa. We chose 5 companies as Visa competitors as they are in the same industry or have similar market objectives.

Latest Visa stock news