As inflation lingers, many shoppers are delaying payments via various plans or using their credit cars. Credit card giant Visa saw both earnings and sales growth rate rise last quarter from the prior quarter. It’s projected to report 11% higher earnings to $2.66 per share this quarter on an 8.4% rise in revenue to $9.4 billion.
On Thursday Visa stock got a Relative Strength Rating rating upgrade, with a jump from 80 to 83. One important metric to look for in a stock is an 80 or higher RS Rating. Decades of market research reveals that the best stocks typically have an RS Rating of at least 80 in the early stages of their moves. Visa (V) just hit that mark.
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Visa Ratings Outstanding Overall
Among its other key ratings Visa has a 91 EPS Rating, putting it in the top 9% of stocks for recent and long-term profit growth. Even better, it sports a 96 Composite Rating, showing overall strength. Additionally, Visa has a B Accumulation/Distribution Rating on an A+ to E scale. The B rating show big funds are fairly eager buyers.
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Visa is now considered extended and out of buy range after clearing a 291.04 buy point in a first-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Profit And Sale Growth Rate Rising
Visa saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 12% to 16%. Revenue rose from 10% to 12%. The company is expected to report its latest results on or around Jan. 23.
Visa earns the No. 6 rank among its peers in the Finance-Card/Payment Processing industry group. Shift4 Payments (FOUR), Paymentus Holdings (PAY) and Discover Finl Svcs (DFS) are among the top 5 highly rated stocks within the group.
The unique IBD Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that shows how a stock’s price action over the trailing 52 weeks matches up against that of all other stocks.
Please follow James DeTar on Twitter @JimDeTar
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