Visa is reportedly facing a probe from the U.S. Department of Justice on its debit card business.
According to the Wall Street Journal, the DoJ is investigating into allegations that Visa restricted the ability of merchants to route debit card transactions in order to limit so-called 'network fees'.
“The U.S. Department of Justice has informed Visa of its plans to open an investigation into Visa’s U.S. debit practices" and is cooperating with the department, according to the company’s statement in a regulatory filing Friday afternoon. “We believe Visa’s U.S. debit practices are in compliance with applicable laws."
Last year, the DoJ sued Visa, thereby blocking a $5.3 billion deal the network had signed with Plaid Inc., saying that the merger would further thwart competition in the online debit-card market. Visa and Plaid ultimately abandoned the deal.
V may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 41 cases where V's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where V advanced for three days, in of 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on May 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on V as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for V turned negative on May 22, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
V moved below its 50-day moving average on May 23, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where V declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for V entered a downward trend on May 26, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. V’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.225) is normal, around the industry mean (3.868). P/E Ratio (30.120) is within average values for comparable stocks, (29.177). Projected Growth (PEG Ratio) (1.657) is also within normal values, averaging (1.405). V has a moderately low Dividend Yield (0.008) as compared to the industry average of (0.049). P/S Ratio (15.314) is also within normal values, averaging (5.588).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows