Visa, Inc. : A seemingly rebound
By Rosanna Santana
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$202.35 | $0 | $189.7 | -100% |
The company shows strong fundamentals as the recent fiscal release for the Q2 2014 attested. Indeed, quarterly sales increased 26 percent for $1.6 billion, or $2.52 per share. Payments volume growth advanced 8% for the same period. Foremost, yearly sales are expected to rise by more than 8% in the current fiscal year as margins get higher. Furthermore, the stock benefits from upward revisions in terms of EPS, where $9 per share for 2014 and $10.4 per share for the next year. The consensus among analysts remains buyer on Visa.
Technical patterns are encouraging. The stock recently fell 4.5% after the credit-card company reported a yearly revenue miss last April 24th. Nowadays, with the rising trend line already tested the equity renewed its ambitions and supported by the 50-week moving average should now rise close to the USD 233 resistance. This target will be attained by means of a breakout through the USD 212 midterm resistance and further exceed of the pivot point. In favorable conditions for a growing sector shares of the payments giant are more likely to jump than to fall.
According to both technical and fundamental analysis, the timing seems suitable for a long position taking above USD 196. The bullish trend should allow the security to reach the USD 233 resistance. A stop loss will be placed below the entry point at USD 189.7.