V is one of the world’s largest payment networks, with its logoed credit and debit cards in wallets around the globe. In fact, the company owns roughly 70% of the U.S. payment cards market.

But like many other stocks, V has gone through a bad period of forced selling recently. Each red bar in the chart below signals unusually large volumes in V shares. They reflect our proprietary Big Money outflow signal, pushing the stock lower:

So, V shares are up only 5% this year, whereas they’ve beaten the market handily over three-, 10-, and 15-year periods. But now MAPsignals data shows how Big Money investors have sold this quality name.

Visa Shares Down, Time to Buy?

When best-of-breed stocks are sold hard, history shows it’s often a buying opportunity for long-term investors. Institutional volumes reveal plenty. Each red bar below signals unusually large outflow volumes in V shares:

Look at the stretch in mid-to-late 2021 – red bars for months. Capitulation was in full effect and share values fell. But those who bought during that time, or when it sank further in 2022, have profited handsomely since, even with the latest dips.

See, despite the near-term volatility, there’s a powerful fundamental story happening with Visa.

Visa Fundamental Analysis

A healthy fundamental backdrop makes this company worth investigating. As you can see, V has had strong sales and earnings growth, as well as healthy profits:

• 3-year sales growth rate (+14.3%)
• 3-year EPS growth rate (+20.1%)
• Profit margin (+54.2%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +12.9%.

V has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Visa has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times since it went public in 2008. The blue bars below show when V was a top pick…sending shares higher:

There weren’t many Top 20 signals from 2021-2023. But look at the Big Money buys that preceded that period. Share values flew higher then and since. So, those brave enough to buy when the stock was down were rewarded.

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Visa Price Prediction

Given the fundamentals, it wouldn’t surprise to see the stock rise once again with Big Money support. Great companies don’t stay down forever.

Big Money selling in the shares is signaling to take notice. Given the historical gains, strong fundamentals, and recent big selling, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds long positions in V in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

This article was originally posted on FX Empire

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