Visa’s (V) stock has risen 11% over the past 12 months as a result of strong growth in volumes and the addition of new clients in 2Q17. The company is gaining ground through more partnerships and co-branded cards, but the market is expected to be more competitive on the pricing front as companies cut costs. Visa is a business that helps to facilitate the smooth functioning of commerce.

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In the meantime, our current consensus estimate forecasts the revenue to be $8.91 billion, indicating a 9.65% growth compared to the corresponding quarter of the prior year. The findings could upend the financial services industry that, like other business sectors, is racing to adopt generative AI technologies. Nvidia also announced it will conduct a 10-for-1 stock split June 7, which would trim its share price from about $950 to $95 while maintaining the company’s total valuation, enabling investors and employees to more affordably purchase whole shares. The standard argument for Visa’s suitability as a stock candidate is that its performance matches the economy. It has performed impressively during the past few years despite inflation, and many strong retail indicators are helping it along. However, the market often reflects overall investor sentiment, and that can override a company’s real performance.

Is Visa stock a buy?

It has no match for its reach, with 4.3 billion credit and debit cards worldwide, easily outdoing any competition. That’s a powerful moat, and it continuously invests in its business through technological innovation and partnerships to solidify its edge. In 1983, most Visa cards around the world began to feature a hologram of a dove on its face, generally under the last four digits of the Visa number. Today, cards may be co-branded with various merchants, airlines, etc., and marketed as “reward cards”.

NYSE: VVisa Inc Stock

Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. There’s no denying that Visa is a wonderful business, but investors should also take a closer look at the valuation to determine if the stock is a buy.

How Visa wants to turn your debit card into your credit card

  1. Each Class B-1 stockholder considering whether to participate in the Exchange Offer is therefore urged to consult with its own legal and regulatory advisors.
  2. The added benefit investors get from owning a company like Visa is that it’s a natural inflation hedge.
  3. Nvidia’s stock popped 4% immediately after the release, sitting at what would be an all-time high in regular trading hours.

For the fiscal year 2022, Visa reported earnings of US$14.96 billion, with an annual revenue of US$29.31 billion, an increase of 21.6% over the previous fiscal cycle. As of 2022, the company ranked 147th on the Fortune 500 list of the largest United States corporations by revenue.[65] Visa’s shares traded at over $143 per share, and its market capitalization was valued at over US$280.2 billion in September 2018. Market participants will be closely following the financial results of Visa in its upcoming release. On that day, Visa is projected to report earnings of $2.41 per share, which would represent year-over-year growth of 11.57%.

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Following the company’s ups and downs during the pandemic and the subsequent recovery, we think Visa has now settled into a more normalized groove. We believe the company’s recent performance highlights the long-term secular tailwinds that will continue to drive solid growth over the long run. In our view, the combination of Visa’s wide moat and its long growth runway creates a very attractive backdrop. We will maintain our $260 fair value estimate and see shares as fairly valued.

But it’s also worth mentioning that Visa is way more expensive than the overall S&P 500. And the stock is trading at a sizable premium to where it was at just eight months ago. Investors know this is a quality business, so its shares rarely go on sale at a discount.

Nonetheless, I would be surprised if the stock didn’t outperform the market during the next decade. In fiscal 2023, which ended Sept. 30, less than 8% of Visa’s revenue came from additional services not directly tied to the processing of transactions. Offerings vary, ranging from risk and fraud detection to advisory and consulting services. Between fiscal 2013 and fiscal 2023, Visa reported annualized revenue growth of 10.7%. During this 10-year stretch, there was only one year when the business posted a sales decline.

Using cards as a method of payment is so ingrained in our society that Visa’s competitive standing is almost impossible to disrupt. Along with its duopoly position with Mastercard, Visa has a mutually beneficial relationship with numerous banks that issue its branded credit cards, as well as acquirers that bring on new merchants to the network. It is a leader in financial technology, or fintech, and it has launched better, faster payments and money-moving methods. Its two innovation-focused categories, new flows and value-added services, are growing faster than the consumer payments category. New flows, which comprise alternative payment methods like Visa Direct, increased 14% year over year in the 2024 fiscal second quarter (ended March 31), while total revenue was up 10%. Visa Incorporated operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions.

Nvidia reported $6.12 earnings per share and $26 billion of sales for the three-month period ending April 30, shattering mean analyst forecasts of $5.60 and $24.59 billion, according to FactSet. Visa stock trades at a price-to-earnings ratio of 31, but that’s cheaper than its five-year average of 35. As of the end of the second quarter, Visa is maintaining an optimistic outlook of low double-digit percentage revenue growth for both the fiscal third quarter and the full year.

Visa makes a lot of acquisitions to bolster this arm of its business and create a formidable financial services giant. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.08% per year. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.

Considering the high growth and low exchange volatility expected in the upcoming quarters, the stock could offer attractive returns to investors in the long term. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on, top-rated podcasts, and non-profit The Motley Fool Foundation. In 2011, MasterCard and Visa were sued in a class action by ATM operators claiming the credit card networks’ rules effectively fix ATM access fees.[88] The suit claimed that this is a restraint on trade in violation of US federal law. The lawsuit was filed by the National ATM Council and independent operators of automated teller machines.

As travel picks up again, following a period of pressured demand from the pandemic, Visa is benefiting. Cross-border payment volume was up 24% year over year, faster growth than overall payments volume. “On the cross-border front, the travel recovery trend has been steady and generally in line with our expectations so far in fiscal year ’23,” said CFO Vasant Prabhu on the latest earnings call. Management also mentioned travel into Asia being stronger than pre-pandemic levels. Visa trading refers to a situation where a migrant is sponsored for a specific work or position.

Because it takes a tiny cut of every transaction that occurs on its network — an assessment fee of less than 0.15% — if prices for things go up and consumers are required to spend more, Visa’s revenue gets a boost. Finally, the study found that applying GPT-4’s financial acumen to trading strategies produced more profitable beaxy exchange review trading, with higher share ratios and alpha that ultimately beat the stock market. Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $298.5. Visa has a set of rules that govern the participation of financial institutions in its payment system.

It connects consumers and their banks with merchants and their banks by providing a communications channel that allows card transactions to be processed. According to Statista, Visa handles more than 60% of all card payment volume in the U.S., way ahead of second-place Mastercard. Nvidia has almost single-handedly lifted the American stock market from its 2022 doldrums to today’s record levels. Its 490% total return over the last 18 months is far better than the average S&P 500 stock’s 13% return over the period, with the S&P up over 36% during that stretch. Value-added services was even stronger in the quarter, up 23% over last year. These are services like tokenization, open banking, and data solutions that add value for partnering financial institutions.

The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Visa’s substantial trades, within a strike price spectrum from $240.0 to $290.0 over the preceding 30 days. One stock, Visa (V 0.91%), has crushed the S&P 500’s gain by a wide margin. Shares of this top financial company have soared 393% in the past decade, thanks to a strong fundamental performance. It’s also important for investors to be aware of any recent modifications to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.

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