Visa Stock Surges on Latest Earnings - But, is there still upside potential?

Visa Stock surged on the latest earnings release. As a value investment, what upside potential is there with Visa stock?

Visa - V Stock - 4-Hour Chart

Last week we saw numbers coming out of Visa - V Stock. Visa beat on top-line revenue as well as earnings. And, projections were for more increases in both. While there was a big pop in V stock, the prospect of higher interest rates is weighing on V stock. This makes sense because the costs to consumers after they have made their purchases will go higher. Aggregate demand will drop.

Given the upward pressure on interest rates, Visa stock is likely to remain pressured lower despite its recent financial guidance and the beat on revenue & earnings. As a value investment, any moves lower should be seen opportunity. The economy is likely to be pressured to contract and Visa will absolutely feel that pressure.

But, the eventuality is that the Fed will achieve its 2.00% target rate for inflation gains. Then, interest rates will begin to fall lower. This is what is going to push transactions back upwards for payment processors. While Visa stock is likely to move lower, as long as the economy finds its footing and begins to expand when the Fed lowers interest rates as its next move, Visa stock would then turn back upward.