Visa stock: buy or sell?
Updated on:
August 23rd, 2019
4
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 setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
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.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-1 | UBS Group | n/a | Neutral |
| 2019-7-3 | Wedbush | n/a | Outperform |
| 2019-7-24 | SunTrust Banks | n/a | Buy |
| 2019-7-24 | Raymond James | n/a | Outperform |
| 2019-7-24 | Raymond James | n/a | Outperform |
| 2019-7-24 | Nomura | n/a | Buy |
| 2019-7-24 | KeyCorp | n/a | Overweight |
| 2019-7-24 | JPMorgan Chase & Co. | Overweight | Neutral |
| 2019-7-24 | Guggenheim | Buy | Positive |
| 2019-7-24 | Goldman Sachs Group | n/a | Buy |
| 2019-7-24 | Credit Suisse Group | n/a | Buy |
| 2019-7-19 | Barclays | n/a | Overweight |
| 2019-7-18 | Jefferies Financial Group | n/a | Buy |
| 2019-7-11 | Morgan Stanley | n/a | Overweight |
| 2019-7-11 | Deutsche Bank | n/a | Buy |
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.
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%).
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:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-8-1 | UBS Group | Raises Target | $183.00 | $187.00 | 2.2% |
| 2019-7-24 | SunTrust Banks | Raises Target | n/a | $205.00 | - |
| 2019-7-24 | Raymond James | Reiterates | $177.00 | $193.00 | 9% |
| 2019-7-24 | Raymond James | Raises Target | $177.00 | $193.00 | 9% |
| 2019-7-24 | Nomura | Raises Target | $178.00 | $204.00 | 14.6% |
| 2019-7-24 | KeyCorp | Reiterates | $190.00 | $195.00 | 2.6% |
| 2019-7-24 | JPMorgan Chase & Co. | Raises Target | $166.00 | $182.00 | 9.6% |
| 2019-7-24 | Guggenheim | Raises Target | $178.00 | $190.00 | 6.7% |
| 2019-7-24 | Goldman Sachs Group | Set Price Target | n/a | $202.00 | - |
| 2019-7-24 | Credit Suisse Group | Set Price Target | n/a | $203.00 | - |
| 2019-7-19 | Barclays | Raises Target | $181.00 | $195.00 | 7.7% |
| 2019-7-18 | Jefferies Financial Group | Reiterates | $190.00 | $210.00 | 10.5% |
| 2019-7-11 | Morgan Stanley | Raises Target | $175.00 | $191.00 | 9.1% |
| 2019-7-11 | Deutsche Bank | Reiterates | $177.00 | $225.00 | 27.1% |
| (in average) | $179.30 | $198.20 | 11.0% |
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.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.86 | n/a |
| 2017-Q3 | 2017-10-25 | 0.85 | 0.9 | 5.9% |
| 2017-Q4 | 2018-02-01 | 0.99 | 1.08 | 9.1% |
| 2018-Q1 | 2018-04-25 | 1.01 | 1.11 | 9.9% |
| 2018-Q2 | 2018-07-25 | 1.08 | 1.2 | 11.1% |
| 2018-Q3 | 2018-10-24 | 1.2 | 1.21 | 0.8% |
| 2018-Q4 | 2019-01-30 | 1.25 | 1.3 | 4.0% |
| 2019-Q1 | 2019-04-23 | 1.24 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/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%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $11,780 M | - | $4,960 M42.1% | - |
| 2014 | $12,700 M | 7.81% | $5,420 M42.7% | 9.27% |
| 2015 | $13,880 M | 9.29% | $6,328 M45.6% | 16.75% |
| 2016 | $15,082 M | 8.66% | $5,991 M39.7% | -5.33% |
| 2017 | $18,358 M | 21.72% | $6,699 M36.5% | 11.82% |
| 2018 | $20,609 M | 12.26% | $10,301 M50.0% | 53.77% |
| TTM | $21,674 M | 5.17% | $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%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $4,570 M | - | $1,990 M43.5% | - |
| 2017-Q3 | $4,860 M | 6.35% | $2,070 M42.6% | 4.02% |
| 2017-Q4 | $4,862 M | 0.04% | $2,522 M51.9% | 21.84% |
| 2018-Q1 | $5,073 M | 4.34% | $2,605 M51.4% | 3.29% |
| 2018-Q2 | $5,240 M | 3.29% | $2,329 M44.4% | -10.60% |
| 2018-Q3 | $5,434 M | 3.70% | $2,845 M52.4% | 22.16% |
| 2018-Q4 | $5,506 M | 1.32% | $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:
| V | EBAY | FIS | MA | UEPS | |
|---|---|---|---|---|---|
| Market cap | $304.9 B | $33.7 B | $45.7 B | $289.2 B | $185.8 M |
| Total shares | 1,740.0 M | 871.5 M | 331.0 M | 1,030.0 M | 56.8 M |
| Float shares | 1,720.0 M | 790.0 M | 610.5 M | 996.6 M | 42.7 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 selling | 0.0% | 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 pattern | lt06a |
| 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:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| VVisa | 7.89% | 20.48% | 22.32% |
| EBAYeBay | 7.53% | 4.00% | 12.93% |
| FISFidelity National... | 16.53% | 29.63% | 28.27% |
| MAMastercard | 11.78% | 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.- eBay (EBAY)
- Fidelity National Information Services (FIS)
- Mastercard (MA)
- Net 1 UEPS Technologies (UEPS)
- WEX (WEX)
Latest Visa stock news
- Seeking AlphaBuy Visa: Great Total Return And A Cash MachineAugust 2, 2019
- InvestorPlaceVisa Stock Is Expensive, But It May Climb HigherJuly 26, 2019
- Seeking AlphaVisa And Mastercard: 2 Stocks, 1 Superior Business ModelJuly 25, 2019
- Seeking AlphaVisa - Strong Steady Growth Driven By TechnologyJuly 25, 2019
- InvestorPlace4 Reasons for Investors to Take Profits on Visa Stock … For NowJuly 25, 2019