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Options Corner: Visa Is Setting Up A Statistical Breakout That You Don't Want To Miss

Multinational payment card services provider Visa (NYSE:V) continues to perform as a consistently reliable blue-chip enterprise. On a year-to-date basis, V stock has gained just over 10%, which is a modest but noticeable improvement over the benchmark S&P 500 index. At the same time, broader economic concerns cloud the company, which is set to release its results for the fiscal third quarter near month's end. Still, the unusual circumstances may present a bullish edge for speculators.

On July 29, Visa is scheduled to disclose its financial results, with Wall Street analysts anticipating earnings per share of $2.83 on revenue of $9.82 billion. In the year-ago quarter, the financial services giant posted earnings of $2.42 per share with a top-line print of $8.9 billion. What should boost confidence for investors is that Visa commands a long history of earnings beats.

That said, it's also interesting that the sole hiccup since the fiscal third quarter of 2020 materialized one year ago, when Visa suffered a slight miss against revenue expectations. Could lightning strike twice for the bears?

It's possible and the pessimists might argue that it's probable. Consumers have been pivoting toward lower-cost food alternatives, a dynamic that echoes the 2009 recession. Unfortunately for the company, broader headwinds have impacted its revenue streams, suggesting that Visa is vulnerable to economic softness, despite the counterargument that credit cards can allow holders to stretch their finances.

Nevertheless, the broader transition toward digital payment solutions has so far bolstered V stock. While there are consumers that still prefer to use cash, the emphasis today is on greater convenience and wider integration with digital platforms. Overall, the idea is that this massive tailwind can help Visa ride out the present economic turbulence.

Establishing The Benchmark For V Stock And Beating It

While the financial services provider has performed well this ...