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V Stock : Visa Stock Will Reward Patient Investors

V Stock : Visa Stock Will Reward Patient Investors
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There is a mystery going on on Wall Street these days. Investor sentiment is on shaky grounds so far Standard & Poor’s 500 He broke records on Friday. This has been one of the strongest bull markets in history. However, investors seem to be keeping one foot out the door. This is causing some real pain in some companies – Visa (New York Stock Exchange:Fifth) One stock. V stock has suffered from random selling, but also sector-wide pain. Even the mighty to forbid (New York Stock Exchange:mint) It has lost nearly 40% of its value since the height of summer.

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There is nothing wrong with Visa’s basics, nor its sector. In fact, fintech stocks have some of the brightest futures contracts available. The pandemic has made clear that the world urgently needs to make its financial processing electronic. These services will be required for years to come.

In addition, we also have a revolution in cryptocurrency. Even central banks are entering this field. There is no doubt that we will use electronic money, so the future of Visa is bright. Although they are not the star of their industry, they are one of the best dogs and will continue to be.

The world needs fintech

The demand for its services is also increasing from retail transactions moving into cyberspace. The world is finally looking to digitize its finances. This is no longer a convenience but a necessity. Old dogs like Visa, Master Card Credit Card (New York Stock Exchange:MA) And American Express (New York Stock Exchange:AXP) They do a decent job of adjusting.

Difficult to shift focus on a large scale. But in the end these big companies will succeed, and Visa’s management appears to be up to the task.

V stock is down 25% from its summer high to its November low. It has rebounded 12% from this bottom but will now face new resistance. So, technically speaking, the bulls are going to have a rough time in the next few weeks. But this is part of normal price action. Smart investors won’t take it seriously.

Healthy V Stock Basics

There is nothing wrong with the basics of this company. Financial metrics still suggest that management is suspicious. Total revenue and net income have nearly doubled since 2015. There are no signs of deteriorating conditions as the stock price suggests.

Visa’s stock isn’t cheap though – it carries nearly an excessive P/E ratio. Although it’s loud, it’s not something that should cause concern. This is the norm for its competitors with the exception of Block, the oddball of the group. Visa has all the tools you need to adapt its strategy to future trends.

Suppose they have a decade of clean runway. So it’s a matter of timing to get into investments with a bit of intelligence. Chasing her in the summer was a mistake, as was panicking her at $190 a share.

Support must continue with the markets

Visa (V) arrow chart showing the potential base

Source: Charts from TradingView

Technically, this is where the next risk lies but it won’t come from Visa itself. If the stock drops below its November lows, it will risk losing another 10% from there. However, this is unlikely to happen unless the entire stock market is corrected as well.

Those already long stocks have no reason to add at this point. A person looking to invest in it should only take partial positions to get started on a case. While this isn’t an obvious overtaking situation, it’s not an inexpensive entry point either.

Investors will do better if they take their positions on chips. This would leave room for risk management over time. The idea is average in Not average down. Lately, when we’ve had a string of bad days, experts start calling in the higher echelons. Negative rhetoric is a real threat to short-term stock prices.

Posted by Nicolas Chahine He did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.

Nicolas Chahine is the managing director of SellSpreads.com.

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