Visa Inc. (V) is scheduled to report its second-quarter earnings on Tuesday after the market closes. Analysts anticipate earnings per share (EPS) of $2.44 and revenue of $8.62 billion. Visa has surpassed earnings expectations in the preceding four quarters.
The stock experienced significant gains from October 2023 to March 2024, but has since declined by more than 7% since March 21. This drop has reduced its year-to-date performance to 3.62%.
Several factors may have contributed to the stock’s performance: Capital One Financial Corp’s (COF) ongoing acquisition of Discover Financial Services (DFS) for $35.3 billion, challenging the dominance of Visa and Mastercard. Additionally, a class action settlement against Visa and Mastercard Inc. (MA) led to both companies reducing swipe fees for merchants and agreeing not to increase them above set rates for several years. Mastercard, Visa’s competitor, has also experienced a decline of 6.80% since March 21 and is set to report its Q1 earnings on May 1.
Technically, Visa’s stock exhibits a bearish trend, trading below its 5, 20, and 50-day simple moving averages (SMAs). The Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI) further support the bearish sentiment. However, the stock’s price remains above its 200-day SMA.
The consensus analyst rating for Visa stock over the past 100 ratings remains Outperform, with a price target of $265.77. However, more recent analyst ratings suggest a potential upside of 12.02% from the current trading price.
