Visa Inc. (V) stock gained in Tuesday's premarket trading after the company received regulatory approval to begin preparations for a domestic payments business in China.

The stock rose even as broader market signals remained mixed. S&P 500 futures gained 0.06%, while Nasdaq futures declined 0.44%.

Visa Advances China Expansion

Visa announced Tuesday that the People's Bank of China approved its application to begin preparations for a domestic bankcard clearing institution.

The approval marks an important step toward entering China's domestic payments market. However, Visa must complete additional regulatory requirements before launching operations.

CEO Ryan McInerney said the decision builds on Visa's more than 40-year presence in China.

The company said it will continue working with regulators to complete the approval process and begin domestic bankcard clearing operations.

Technical Analysis

Visa shares remain above their major moving averages, signaling a strong longer-term uptrend.

The stock trades 6.9% above its 20-day simple moving average (SMA) of $369.47 and 6.7% above its 50-day SMA of $370.19.

It also stands 11.2% above its 100-day SMA of $355.32 and 16.8% above its 200-day SMA of $338.33.

Meanwhile, the moving average convergence divergence (MACD) indicator remains above its signal line, suggesting positive momentum.

However, the 20-day SMA remains below the 50-day SMA, indicating some lingering short-term weakness.

The $365.50 level serves as a key support area. A sustained decline toward that level could test the stock's recent gains.

Earnings and Analyst Outlook

Visa is scheduled to report fiscal fourth-quarter results on Oct. 27.

Analysts expect earnings of $3.43 per share, up from $2.98 a year earlier. Revenue is projected to rise to $12.07 billion from $10.72 billion.

The stock carries a Buy consensus rating, with an average price forecast of $425.60.

Baird raised its price forecast to $430 on Monday. RBC Capital Markets and Wolfe Research previously raised their forecasts to $466 and $460, respectively.

MarketDash Edge Rankings

Visa's MarketDash Edge Rankings show strong momentum and quality scores of 81.67 and 84.92, respectively.

However, its value score of 8.14 and growth score of 17.69 point to valuation concerns and relatively weaker growth.

The stock trades at about 33.1 times earnings, leaving it sensitive to any disappointment in future results.

V Stock Price Action

Visa shares rose 1.47% to $395 in Tuesday's premarket trading, according to market data.