Long

Visa - Can it Still Jump 30%?

Is the financial giant still able to show upside of up to 30% given the struggles in the world?

Fundamental indicators:

Revenue and Profits - keeps growing and beating expectations
Profit margin - is at circa 50% which makes it one of a kind
P/E - is quite high at 35x but may be deemed acceptable with this sort of business efficiency
Liabilities - no problems there

Risks:

Recession - is most likely approaching hence will eventually impact this impressive business as well
Eastern Europe conflict - suspension of business in Russia will have some impact on earnings

Technically:

It is clearly visible that Visa was enjoying exponential growth up until 2020 - which can be marked as global wave 3 using Elliott Wave count
Following Fed's pump of money into economy it stretched the correction into a Running Flat which ended in February 2022
And now we are potentially enjoying the final fifth wave which already looks that it may develop into Ending Diagonal when observing in lower timeframe
Specifically it looks like the first wave has already been formed by zigzag ,and now that the second wave has completed the third wave is developing
Depending on the shape of the fifth wave, Ending Diagonal or Impulse, the target is potentially ranging from $250 to $270 using Fibonacci levels

Alternative scenario - there is an alternative scenario that the fifth wave has already completed but it looks very unlikely at the moment

So the question is - will be 'the last man standing' continuing the growth before crisis hits the global economies?

What are your thoughts about this scenario?

Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.

Thanks

vitalalyt

In search of the optimal signals

vitalalyt

In search of the optimal signals

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