How to Trade Visa Shares After Q2 Performance
The results of global payment providers such as Visa are widely watched by investors and analysts around the world. As most consumers use a Visa or Mastercard the results of these companies can provide indicators on the health of an economy and consumer spending.
Visa just reported fiscal second-quarter results for 2023. Learn more about the earnings report and what analysts are forecasting for the stock below.
|Symbol for Invest.MT5 Account:||V|
|Date of Idea:||2 May 2023|
|Time Line:||1 - 6 months|
|Position Size for Invest.MT5 Account:||Max 5%|
- The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Visa Q2 2023 Performance Breakdown
Here are some of the key highlights from the latest fiscal second-quarter earnings report from Visa:
- Earnings per share of $2.09 vs $1.99 expected
- Revenue of $7.985 billion vs $7.799 billion expected
- 3-year earnings per share growth of 14% and 10% sales growth
- International transaction revenue was up 24% to $2.75 billion, above $2.73 billion expected
- Data processing revenue up 10% to $3.82 billion
Since October 2020, Visa has reported results that have beaten top and bottom-line expectations. There were fears that higher inflation and the banking crisis would affect financial companies. However, as Visa is simply a payment processing company, they are less sensitive to interest rate risk than traditional banks.
The post-pandemic rise in international travel has contributed to a rise in digital payments around the world, as detailed by a surge in Visa’s international transaction revenue. On the face of it, it seems Visa is performing well.
However, one thing to note is that post-pandemic travel is starting to normalize. While Visa has benefitted from this growth, it may have also reached a peak. The outperformance in the top and bottom-line expectations also looks good but is also starting to slow as well.
The biggest risk for Visa is the continued rise in inflation and a slowdown in consumer spending. This is because Visa gets paid when people use their debit or credit card. If consumers start to tighten their wallets it will affect Visa’s revenue and share price.
Therefore, tracking global macroeconomic data will be just as important as analyzing company fundamentals when researching Visa’s stock price.
Visa Stock Forecast - What do the Analysts Say?
According to analysts polled by TipRanks for a Visa stock forecast in the past 3 months, there are currently 17 buy, 1 hold and 0 sell ratings on the stock. The highest price level for a Visa stock forecast is $300.00 with the lowest price target at $240.00.
The average price target for a Visa stock forecast is $272.83.
An Example Trading Idea for the Visa Stock Price
An example trading idea for the Visa share price could be as follows:
- Buy the stock on a break above $236.00 to allow for current volatility.
- Target just below the highest analyst price target of $300.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Visa shares:
- If target is reached = $640.00 potential profit ($300.00 - $236.00 * 10 shares).
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how the stock has already outperformed this year.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Visa stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall!
How to Buy Visa Stock in 4 Steps
With Admirals, you can buy shares in companies like Visa with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the Trader’s Room.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.
- Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.
Click on the banner below to trade Visa stock today! ▼▼▼
Do You See the Visa Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Visa's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article.
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