Visa Stock Price Prediction

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for Visa are included.

The above forecast is the most-recent forecast from October 6th 2015 and are for the long-term periods of three months and one year. Visa Inc. is among the top stock picks for both time horizons. The forecasts are highly bullish, with strong signal strengths of 2.06 and 65.65 respectively with predictability ratings of 0.31 and 0.43. Over the predicted time horizons, the stock price will increase considerably. Visa is also working to integrate itself into the future of mobile payments by hiring scads of technology professionals to create the required technology, which represents an important source of revenue

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Visa. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.

Conclusion

As a payment-processing network, Visa earns revenue every time somebody swipes their credit card to make a purchase. The frequency of this occurrence and the abnormally small effect economic conditions have on these swipes makes Visa a strong company. As they begin to introduce new microchipped credit cards to America, credit card fraud rates are expected to decline. While the fraud does not directly impact Visa’s financials, it certainly boosts consumer confidence, which has a significant effect on brand loyalty (an aspect that does affect Visa).

The company is a little late with the microchipped cards, but they have since invested heavily in technological advancements to keep up with the changing tastes of consumers. Analysts forecast a positive future for Visa. For these reasons, the I Know First algorithm is bullish on this stock in the long term, with a bullish algorithmic forecast to support this fundamental analysis of Visa stock.