Visa Stock Buy Hold or Sell Recommendation

V -  USA Stock  

USD 207.37  4.69  2.31%

Taking into account the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Visa Inc is 'Hold'. Macroaxis provides Visa buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Visa positions. The advice algorithm takes into account all of Visa's available fundamental, technical, and predictive indicators you will find on this site.

Visa Advice 

 
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The advice is provided from Visa's buy-and-hold perspective. Also, please take a look at Visa Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Visa and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Visa Inc.

Execute Visa Buy or Sell Advice

The Visa recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Visa Inc. Macroaxis does not own or have any residual interests in Visa Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Visa's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell VisaBuy Visa
Hold

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Almost neglects market trendsDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Visa Inc has a Risk Adjusted Performance of (0.09), Jensen Alpha of (0.24), Total Risk Alpha of (0.19) and Treynor Ratio of 0.6084
Macroaxis provides recommendation on Visa Inc to complement and cross-verify current analyst consensus on Visa Inc. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Visa Inc is not overpriced, please validate all Visa fundamentals, including its revenue, total debt, earnings per share, as well as the relationship between the net income and book value per share . Given that Visa Inc has a price to earning of 40.58 X, we advise you to double-check Visa Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Visa Trading Alerts and Improvement Suggestions

Visa Inc generated a negative expected return over the last 90 days
Visa Inc is unlikely to experience financial distress in the next 2 years
Visa Inc has a frail financial position based on the latest SEC disclosures
Over 97.0% of the company outstanding shares are owned by institutional investors
Latest headline from fostersleader.com: What The Financials Tell Us About Visa Inc. - The Fosters Leader

Visa current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Visa analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Visa analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price278.05
Target Median Price280.10
Target High Price309.00
Recommendation Mean1.80
Number Of Analyst Opinions40
Target Low Price202.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Visa Returns Distribution Density

The distribution of Visa's historical returns is an attempt to chart the future uncertainty of Visa's future price movements. The chart of the probability distribution of Visa stock daily returns describes the distribution of returns around its average expected value. We use Visa Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Visa returns is essential to provide solid investment advice for Visa stock.
Mean Return-0.22Value At Risk-2.76
Potential Upside2.58Standard Deviation1.91
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Visa historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Visa Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Visa is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Visa Inc backward and forwards among themselves. Visa's institutional investor refers to the entity that pools money to purchase Visa's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares144.2 M32.1 B
Blackrock IncCommon Shares126.6 M28.2 B
State Street CorpCommon Shares73 M16.3 B
Price T Rowe Associates IncCommon Shares71.2 M15.9 B
Fmr LlcCommon Shares53.2 M11.9 B
Morgan StanleyCommon Shares42.4 M9.4 B
Geode Capital Management LlcCommon Shares28.9 M6.4 B
Note, although Visa's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Visa Cash Flow Accounts

201620172018201920202021 (projected)
Net Cash Flow from Financing(5.92 B)(11.24 B)(12.06 B)(3.97 B)(14.41 B)(14.79 B)
Net Cash Flow from Investing735 M(3.08 B)(591 M)1.43 B(152 M)(164 M)
Net Cash Flow from Operations9.21 B12.71 B12.78 B10.44 B15.23 B16.43 B

Visa Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Visa or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Visa stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Visa stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.24
β
Beta against DOW-0.38
σ
Overall volatility
2.05
Ir
Information ratio -0.11

Visa Volatility Alert

Visa Inc exhibits very low volatility with skewness of -0.48 and kurtosis of 1.76. However, we advise investors to further study Visa Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Visa's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Visa's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Visa Implied Volatility

Visa's implied volatility exposes the market's sentiment of Visa Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Visa's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Visa stock will not fluctuate a lot when Visa's options are near their expiration.

Visa Fundamentals Vs Peers

Comparing Visa's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Visa's direct or indirect competition across all of the common fundamentals between Visa and the related equities. This way, we can detect undervalued stocks with similar characteristics as Visa or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Visa's fundamental indicators could also be used in its relative valuation, which is a method of valuing Visa by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Visa to competition
FundamentalsVisaPeer Average
Return On Equity33.36 %(0.31) %
Return On Asset12.10 %(0.14) %
Profit Margin51.07 %(1.27) %
Operating Margin69.09 %(5.51) %
Current Valuation434.65 B16.62 B
Shares Outstanding1.69 B571.82 M
Shares Owned by Insiders0.13 %10.09 %
Shares Owned by Institutions96.73 %39.21 %
Number of Shares Shorted25.3 M4.71 M
Price to Earning40.58 X28.72 X
Price to Book12.21 X9.51 X
Price to Sales17.92 X11.42 X
Revenue24.11 B9.43 B
Gross Profit23.38 B27.38 B
EBITDA16.65 B3.9 B
Net Income12.01 B570.98 M
Cash and Equivalents18.51 B2.7 B
Cash per Share8.78 X5.01 X
Total Debt21.55 B5.32 B
Debt to Equity0.57 %48.70 %
Current Ratio1.75 X2.16 X
Book Value Per Share16.08 X1.93 K
Cash Flow from Operations15.23 B971.22 M
Short Ratio2.36 X4.00 X
Earnings Per Share4.84 X3.12 X
Price to Earnings To Growth1.95 X4.89 X
Number of Employees21.5 K18.84 K
Beta0.92-0.15
Market Capitalization431.98 B19.03 B
Total Asset64.03 B29.47 B
Retained Earnings10.16 B9.33 B
Working Capital6.27 B1.48 B
Current Asset14.31 B9.34 B
   Acquisition by Hoffmeister James H of 2240 shares of Visa subject to Rule 16b-3 [view details]

Visa Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Visa . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution115048.0
Daily Balance Of Power2.287805
Rate Of Daily Change1.02
Day Median Price206.92
Day Typical Price207.07
Price Action Indicator2.8

About Visa Buy or Sell Advice

When is the right time to buy or sell Visa Inc? Buying financial instruments such as Visa Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Visa investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2018 2019 2020 2021 (projected)
Accounts Payable156 M174 M266 M212.88 M
Receivables4.59 B2.88 B3.73 B4.02 B

Use Investing Ideas to Build Portfolios

In addition to having Visa in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Top FinTech Thematic Idea Now

Top FinTech
Top FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. Top FinTech theme has 81 constituents.
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Also, please take a look at Visa Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Visa Inc information on this page should be used as a complementary analysis to other Visa's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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When running Visa Inc price analysis, check to measure Visa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visa is operating at the current time. Most of Visa's value examination focuses on studying past and present price action to predict the probability of Visa's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Visa's price. Additionally, you may evaluate how the addition of Visa to your portfolios can decrease your overall portfolio volatility.
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Is Visa's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Visa. If investors know Visa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Visa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Visa Inc is measured differently than its book value, which is the value of Visa that is recorded on the company's balance sheet. Investors also form their own opinion of Visa's value that differs from its market value or its book value, called intrinsic value, which is Visa's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Visa's market value can be influenced by many factors that don't directly affect Visa's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Visa's value and its price as these two are different measures arrived at by different means. Investors typically determine Visa value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Visa's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.