Is Visa’s stock back on track?
New reports are showing specific types of success for the Visa company, an established player in conventional finance that’s a household name to many depositors and credit or debit cardholders.
Although Visa does have an impressive past, its future may also be pretty notable if new indicators are any clue … A breaking report from “Investor’s Business Daily” says Visa may be developing a solid “flat base” of price activity within the last few weeks.
The idea is that a flat-base structure shows that companies are holding strong in a volatile market – that they don’t give up gains as easily as some other equities.
Recent news shows Visa climbing 3.1% over a week’s time to $180 and change.
Other Gains Pictures
Barron’s gives a wider view, noting that on August 28, Visa picked up a 34% increase this year. That means it outperformed the S&P 500 by a wide margin … The index gained 14% over the same time frame.
And that’s a significant increase, especially in contrast to the rocky backdrop of Visa’s struggles in the last half of 2018. That’s when the stock saw prices nearly as low as $120. Coming to $180, then, is a 50% increase, all in a relatively short horizon.
Investor Calls Show Strengths
Analysts also see Visa as being successful in handling some of its biggest challenges for the second half of this year – citing low cross-border payment growth, as mentioned by Visa leaders in investor communications. In a July conference call, CEO Alfred Kelly pointed out that cross-border growth was up three points from the past quarter, with pretty low client incentives.
Kelly noted process transaction growth accelerating 12% and highlighted some strategic acquisitions that could help change the landscape in Visa’s favor. A company called Earthport is one of these new holdings, with cross-border payments services through its network connecting 88 countries for financial payment flows.
Another such addition is point-of-sale Payworks software for cloud merchant terminal payment support.
“This enables merchants to seamlessly and quickly implement new functionality, such as adding new payment types,” Kelly said in the conference call.
Kelly also pointed out that Visa has made progress in tokenizing certain assets for digital tabulation, including bank accounts, domestic card networks, and credentials or tickets.
Visa and Libra
Then there’s Visa’s reported buy into Facebook’s Libra stablecoin. That move could highlight innovation as well as proactive and assertive investment. Even if Libra has been stymied and delayed by regulatory activity, the move to get on board can still signal an interest in innovation and seizing blockchain opportunities that could drastically change the financial world.
And the combination of all that could make Visa interesting to some investors.
Looking at the growth trajectory, “Seeking Alpha” reports being impressed by various items praise company moves while urging investors to “load up on Visa”
In light of all of this, some investors may keep a closer eye on Visa’s price activity over the coming weeks. The end of 2019 could be interesting for the company with good augmentation of core models and strong fundamentals.
Justin Stoltzfus writes for Lancaster Newspapers in Lancaster, PA, as well as numerous digital publications like Answerstock, Techopedia, Warrior Trading, and Breaking Modern. His finance reporting has been featured on Motley Fool, Mint.com, and other sites. Stoltzfus is a graduate of James Madison University in Harrisonburg, VA.