The Relative Strength (RS) Rating for Visa moved up into a new percentile Wednesday, as it got a lift from 61 to 72. The credit card giant fell to a 133.93 intraday low in the Covid market slump but steadily rose, hitting an all-time high 252.67 last July. Late last year it fell into a slump as the overall market corrected, but it didn't fall far. Visa is showing renewed strength and has risen 10 of the last 13 days in sync with the market rally.
The 11 point jump in its RS Rating to 72 means that as of today Visa has outperformed 72% of all stocks, regardless of what industry they are in.
Visa Profit, Revenue Growing Fast
Decades of market research reveals that the market's biggest winners tend to have an 80 or better RS Rating in the early stages of their moves. See if Visa can continue to show renewed price strength and clear that threshold.
Among its other key ratings Visa has a powerful 90 EPS Rating, of a best-possible 99. It also has an 86 Composite Rating, putting it in the top 14% of all stocks based on a group of key metrics. And its B Accumulation/Distribution Rating, on an A+ to E scale shows that institutional investors such as mutual funds and insurance funds are fairly heavy buyers of its stock.
Visa reported 27% first quarter earnings growth, to $1.81 per share. The prior two quarters its EPS grew 41% and 45%. Sales have grown in the 20%-30% range for three quarters. Last quarter sales rose 24% to $7.06 billion. The Street expects Visa to report its latest numbers on or around April 27.
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Visa is trying to complete a consolidation with a 252.77 buy point. See if the stock can break out in volume at least 40% above average.
The company earns the No. 4 rank among its peers in the Finance-Card/Payment Processing industry group. WEX and Everi are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique rating tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
