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Stock buybacks can provide a nice confidence boost for investors, indicating that the company is utilizing its excess cash and not just hoarding it. And in 2022, companies willing to let go of extra cash can be hard to fin… If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. Overall, a very strong assessment and setting a high bar for the next quarter’s earnings which are on October 26. From the data we see, EPS and revenue estimates have not been revised since the last earnings report, increasing the possibility for a miss or lower guidance next time out in October. Overlooking that, though, is the performance of the Nasdaq versus interest rates.

If you’d like to buy its stocks you need to find a broker that gives you access to the NYSE because that’s the main exchange it’s traded on (hang tight, we’ll get into this in a bit). When recommending a broker, we take into account different Forex news factors, like the broker’s fees, trading platform, accessible markets, and how easy opening an account is. Safety is also highly important, but since we only recommend reliable and regulated brokers, you don’t need to worry about it.

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That is why the current obsession with interest rates going up affects the Nasdaq. The higher Visa stock interest rate means a higher discount of futures cash flows and so a lower valuation.

  • EU member states’ ambassadors today agreed the Council’s negotiating mandate on a regulation on visa free travel for holders of passports issued by Kosovo.
  • Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
  • According to CNN, analysts are forecasting a range of $225 to $292 for shares, with a median prediction of $270.
  • Citigroup analyst Ashwin Shirvaikar maintainedVisawith a Buy rating and loweredthe price target from$254to$238.
  • In 2025, V is forecast to generate $74,703,608,262,450 in revenue, with the lowest revenue forecast at $73,493,792,547,900 and the highest revenue forecast at $75,976,408,038,798.
  • There is some evidence that credit card usage increases during recessions.

However, given the recent collapse of FTX and bankruptcy of BlockFi, which once counted Visa to offer a rewards card, Visa CEO Al Kelly told CNBC that regulation is needed to regain confidence in crypto. dotbig Visa is piloting the capability with Crypto.com, a Visa partner and one of the largest crypto platforms. It plans to offer the USDC settlement capability to additional partners later this year.

Forecast return on equity

On the other hand, if the recession is more severe than forecast then we may have lower to go. This year alone, we’ve had a couple of the key technical events fail. That being said, let’s review what else is happening both off and on the V stock price chart to https://dotbig.com/ determine when and how bullish Visa investors won’t regretfully pay for their “buy” decisions. Visa is a US Financial Services company, traded on the NYSE under the V ticker. It is known as one of the most well known payment service provider in the world.

Should June’s low fail, the observation is a move to $130 to $142. A challenge of longer term supports dating back more than https://www.cmcmarkets.com/en/learn-forex/what-is-forex a decade is possible over the next several months. If correct, that puts V stock exposure at 27% to 34% for today’s buyers.

Its network spreads across more than 200 countries and regions. Credit card surcharges, then, would allow consumers to avoid the cost if they don’t perceive the benefits to be sufficient.

Visa (V): Company overview and history

This can be used to see what multiple Visa competitors trade on, versus Mastercard and American Express for example. We can also see how the multiple has performed in recent recessions and economic periods to make assumptions about how the valuation looks historically versus Visa’s peer group. For businesses that are contemplating using the surcharge, there are better ways to implement it than simply Forex tacking it on to existing prices. One approach involves reframing the situation for consumers by offering a discount for cash or debit, instead of adding a surcharge for credit cards. Meanwhile, the Dow Jones stock dominates U.S. credit card networks by transactions and cards in circulation. But it has ample room to grow in digital payments, while pursuing new bets in fintech and cryptocurrencies.

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EPS was $1.98 versus a consensus of $1.75 and revenue was $7.28 billion versus a consensus Visa stock price of $7.1 billion. Visa has consistently beaten earnings in the post-pandemic world.

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The P/E valuation may already show that a recession is priced in. A P/E of 24 is the long-term average and Visa already trades on such a multiple. Analysts have already marked down earnings for Q3 and that may provide some stability to equity markets in the short term but it does appear we are in for further earnings downgrades in 2023. So as a result when performing our analysis via relative dotbig valuation and discounted cash flow we will be lowering our estimates by approximately 10% to take into account the challenging earnings and economic backdrop. In our deep dive articles, we differ from the Wall Street community in taking macroeconomic conditions into consideration when formulating our 12-month price targets. This in my view is the biggest weakness of Wall Street forecasts.

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