Visa Stock Up 33% In Year; Hits 80-Plus RS Rating

Visa (V) stock has risen in stairstep fashion this year. Its rise reflects its continuing strong position in the credit card market, driven in part by its use of artificial intelligence. On Tuesday, the Relative Strength Rating for Visa stock jumped from 79 to 82.

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Visa Stock Advances To Elite Group

The 82 RS Rating shows that Visa stock is in the top 18% of all stocks for price appreciation over the past year. Research shows that the best stocks tend to have an RS Rating north of 80 in the early stages of their moves. Visa just advanced into that group of the best stocks to buy and watch.

On its website Visa says that it has been using artificial intelligence for 30 years to protect credit card users. “For the first AI-powered payments network, generative AI marks a new era,” the company said. Visa processes 76,000 transactions across more than 200 countries every second.

Among its other key ratings Visa stock has a robust 92 Composite Rating of a best-possible 99. Its Earnings Per Share Rating is 93. Additionally it carries an A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A best, reflecting its strong fundamentals.

Its C- Accumulation/Distribution Rating, based on institutional investors purchase of its stock, is middling, though the number of funds that own Visa stock rose from 6,244 in the December-ended quarter to 6,519 in September.

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Visa stock is up about 33% in the past year. It’s trying to complete a flat base with a 250.06 buy point. See if the stock can break out in heavy volume. Tuesday Visa closed at 235, up fractionally for the day and about 33% higher than an Oct. 13, 2022 close at 176.60.

Double-Digit Sales Growth Every Quarter

On Oct. 24 Visa said earnings grew 21% in its fiscal fourth quarter to $2.33 per share, on an 11% rise in revenue to $8.61 billion. The payments processing company posted double-digit EPS Growth in three of the last four quarters, and double-digit sales growth every quarter.

Commenting in the fiscal Q4 earnings release, CEO Ryan McInerney said, “As we enter a new fiscal year, I am confident in our ability to deliver against a backdrop of geopolitical and economic uncertainty.”

Visa stock holds the No. 3 rank among its peers in the 38-stock Finance-Card/Payment Processing industry group, according to IBD Stock Checkup. Uruguay-based DLocal (DLO) is No. 1 in the group, and Cloud-based payments platform operator Paymentus Holdings (PAY) is No. 2. Visa archrival Mastercard (MA) is No. 4

IBD’s unique Relative Strength Rating tracks price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price movement over the trailing 52 weeks stacks up against all the other stocks in our database.

Please follow James DeTar on X, formerly known as Twitter, @JimDeTar 

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