Visa (V) shares have been in a sharp uptrend in the trailing six months, but the derivatives market believes their ongoing rally will hit pause after earnings on Oct. 27. Consensus is for the payment card giant to record $3.43 in earnings per share (EPS) for its fiscal Q4, up more than 15% versus the same quarter last year.
Heading into the quarterly print, Visa stock is up about 35% versus its year-to-date low.
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www.barchart.comOptions Sentiment Is Bearish for Visa Stock
Options traders are convinced that a 15% increase in EPS will prove insufficient to trigger a near-term rally in Visa shares. The put-to-call ratio on contracts expiring Oct. 30 sits at 1.65x as of writing, whereas a reading above 1.00x is typically characterized as largely in favor of the bears.
According to the latest data from Barchart, the lower price on those derivative contracts is currently set at $396, signaling potential for a nearly 3% decline in the fintech stock by the end of next week.
That said, Visa does pay a small dividend yield of 0.66%, which makes it attractive for long-term, income-focused investors.
What Makes V Shares Worth Buying?
Visa’s expansion into newer payment channels strengthens its long-term investment case.
Earlier this month, Visa Direct’s “stablecoin-enabled prefunding” moved into production through Inyo Global, offering a potential avenue for growth in cross-border transactions.
Visa also revealed recently that payment volume across its more than 160 stablecoin-linked card programs had nearly tripled year-on-year. These initiatives could help the fintech capture emerging payment flows as businesses adopt digital currencies.
Note that V stock is currently trading at a forward price-to-earnings (P/E) multiple of about 27x, which makes it cheaper to own than its staunch rival Mastercard heading into 2027.
How Wall Street Recommends Playing Visa
Wall Street analysts also seem to believe that Visa shares will rip higher from current levels in the months ahead.
According to Barchart, the consensus rating on the financial technology giant sits at “Strong Buy,” with the mean price target of $427 indicating its ongoing rally is not at all out of steam just yet.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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