Visa Inc. is scheduled to report earnings after today’s close. The stock hit a record high of $252.67/share in 2021 and is currently trading near $206/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
The company is expected to report a gain of $1.69/share on $6.77 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.73/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
The company has enjoyed healthy double digit sales and earnings growth in each of the past two quarters helped by strong consumer spending. Annual earnings have grown nicely since 2020 and the company is expected to continue to grow in 2022, 2023, and beyond.
A Closer Look At The Technicals:
Technically, the stock is in a steep downtrend that began in July 2021. The stock has enjoyed large gains over the past few years and every once in a while it is normal to see it pull back and digest a big run. The bulls want to send the stock above $226.79 and the bears want to send it below $190.10. Until either of those levels are breached, I have to expect this wide sideways trading range to continue. If we break above $226.79, then I expect higher prices to follow. Conversely, if the stock breaks down below $190.10, then lower price will likely follow. Until then, patience is key.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: Visa has been featured in the FindLeadingStocks.com service.