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Saturday, September 30, 2023

Can We Expect More Volatility From Visa Inc. (V)?

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Visa Inc. (V) shares are trading at lower $208.05 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $225.00.

To add more color to this target, the company’s high over the last year is $217.65 and the low is $133.93. Over the last 52 weeks, V is up 15.20% while the S&P 500 is up 17.73%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, V reported a profit of $1.96 billion. Visa Inc. also saw revenues increase to $5.1 billion. In addition, V has free cash flow of $9.7 billion as of 09-2020. The company’s EBITDA came in at $3.3 billion which compares well with its peers.

V booked profit margins of 47.90%, its Return on Equity (ROE) is 34.80%, and its Return on Assets is 13.70%. All told, it is clear that, V needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. V has a short ratio of 3.13 and outstanding shares of 1.97B.

Company Outlook

V has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 7.43 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.55. Visa Inc. V also noted assets of $80.92 billion at the end of the last quarter. Investors should also keep an eye on sector updates as V has historically followed its peers on positive news.

All told, Visa Inc. V has strung together solid data and demonstrated underlying fundamentals. At its current valuation, V represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Visa Inc. V is now commanding a market cap of 443.65B and a float of 1.82B. V is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of V stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in V, either long or short, and we have not been compensated for this article.

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