Visa (V) stock reached an important technical milestone on Tuesday, as its Relative Strength (RS) Rating improved to 81, up from 78 the previous day. The RS Rating is a proprietary rating that measures a stock’s price performance over the past 52 weeks compared to the rest of the market, with scores ranging from 1 to 99.
Historical market research has shown that the best stocks often have an RS Rating above 80 in the early stages of their upward moves. While Visa stock is not currently in an ideal buy zone, investors should keep an eye on it to see if it forms and breaks out of a proper consolidation. It is advisable to wait for an uptrend to resume before considering adding stocks.
Visa’s earnings growth declined from 17% to 9% in the last quarter, but its revenue increased from 11% to 12%. Investors should be on the lookout for the company’s next round of financial numbers, expected around October 25th. In the Finance-Card/Payment Processing industry group, Visa secures the No. 6 rank among its peers. Other highly rated stocks in this group include Paymentus Holdings (PAY) and Mastercard (MA).
Overall, Visa’s RS Rating improvement indicates positive technical performance. Investors should closely monitor its behavior for potential buying opportunities as the stock market continues to correct.
Sources: IBD RS Rating Definition: https://www.investors.com/research/ibd-stock-analysis/what-is-the-rs-rating/
Finance-Card/Payment Processing industry group: https://www.investors.com/stock-lists/industry-group-rankings-leading-stocks-in-top-performing-industry-groups/