Visa holds key support intact and eyes up to a 10% short-term upside move

Visa Inc. (NYSE:V) has not been one of the best stocks this year. However, its minus 6% return year-to-date gives it a hedge compared to the minus 17% return for S&P 500. Besides, as major tech names plunged due to a tighter economy, Visa has only fallen slightly. 

Fundamentally, Visa has not been spared by the geopolitical environment. In March, the payments giant said it would quit Russia. However, a robust travel recovery from the Covid-19 slowdowns was a plus for the stock. On April 26, CEO Alfred F. Kelly pointed out that Visa projects continued growth. He pointed to travel recoveries and the emergence of newer global payment methods.

In the second quarter, Visa’s revenue rose 25.5%, while the EPS of $1.79 was 26.6% higher. The company expects FY22 EPS to increase 21% to $7.15, higher than estimates. 

On Wall Street, Visa has a B grade rating. The stock is rated with a B on fundamental growth, sentiment, and quality aspects. The rating emphasizes Visa as a strong stock for investors. But besides the fundamentals, what makes Visa a buy at the current level?

Visa is heading higher after forming bullish signals at key support

On the weekly chart, Visa has kept intact its key support of $194. A bullish pin bar can be seen towering above the support and pushing prices higher. We expect the current momentum to be sustained due to the strong company fundamentals. Investors should aim at the $227 resistance zone.

Concluding thoughts

Investors should hold or add Visa positions to ride the current bullish move. The stock could rise to $227, representing around a 10% upside potential.