Visa Stock Faces Short-Term Volatility Amid Selloff, Analysts Bullish on Long-Term Growth Potential

Technical Analysis

Visa Inc. (V) closed sharply lower at $352.85 on June 13, 2025, down 4.99% amid a notable selloff. The intraday range between $345.01 and $363.01 indicates increased volatility but remains above the key support at $332.43. The 50-day moving average at $348.70 acts as a near-term technical floor, while the 200-day moving average at $322.02 confirms an overall uptrend. The RSI at 49 suggests a neutral momentum, neither oversold nor overbought, with MACD positive at 4.82 signaling underlying bullish momentum despite the recent dip. Average volume nearly doubled to approximately 12.80 million shares, hinting at strong participation in the selloff. Resistance is positioned at $365.12, close to the recent highs but below the 52-week high of $375.51.

For the next trading day (June 16), the stock may attempt to stabilize or modestly recover toward the 50-day MA as investors digest short-term fears. Over the upcoming week, assuming no additional adverse news, a rebound could play out toward the $365 resistance, driven by technical support levels and positive medium-term momentum indicators.

Fundamental Analysis

Visa’s trailing twelve-month EPS stands at $9.95, with a current P/E ratio of 35.46, reflecting high market expectations for continued earnings growth. The market capitalization of approximately $684.23 billion confirms Visa’s stature as a large-cap growth stock. The discounted cash flow (DCF) valuation at $251.31 is significantly below current price levels, suggesting the stock is trading above its theoretical intrinsic value based purely on cash flow discounting. However, this metric alone may not capture growth prospects fully given Visa’s expansion into fintech and digital payments innovation, as highlighted in recent news regarding growing fintech partnerships.

The upcoming earnings announcement on July 22 is a critical catalyst that could confirm or rebuff recent concerns from the market, including the impact of stablecoin development fears. Analyst consensus leans bullish with 48 buys and 9 holds, no sells, and a consensus target near $389.25, indicating upside potential relative to current prices. The high target of $425 underscores belief in Visa’s long-term scalability and market dominance.

Intrinsic Value and Long-Term Investment Potential

Although the DCF indicates a lower intrinsic value than the market price, Visa’s premium can be attributed to intangibles such as brand strength, network effects, and rapid fintech integration. The company’s strategic initiatives in digital payments and expansion in emerging markets address evolving consumer trends and technological change, providing a solid growth runway. The stock’s premium valuation reflects these qualitative factors and market leadership in global payments infrastructure.

Long-term investors seeking exposure to fintech growth with relatively stable fundamentals may consider Visa’s stock attractive, given its strong cash flow generation, robust competitive moat, and favorable secular trends. The current correction could present an entry point if confirmed by positive earnings and sustained innovation.

Overall Evaluation

Visa’s stock currently displays short-term weakness driven by market concerns over stablecoins and broader volatility, yet maintains strong technical and fundamental underpinnings. The neutral RSI and positive MACD, combined with significant buying interest at the 50-day moving average, suggest potential near-term stabilization and recovery. Furthermore, broad analyst buy-side consensus and strategic fintech initiatives support longer-term growth prospects despite the disparity between DCF and market price.

Categorized as a Hold candidate at present: near-term risk remains elevated due to recent price action and external fintech disruption fears; however, the stock’s established leadership, growth trajectory, and solid technical structure justify retention for investors focused on mid- to long-term appreciation. A cautious approach is warranted until the July earnings release provides further clarity on growth execution and sector dynamics.