S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Sell every Stock except ONE (Ad)
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Denmark says Nord Stream 1 pipelines stop leaking
Sell every Stock except ONE (Ad)
Brazil holds historic election with Lula against Bolsonaro
US shift away from coal hits tribal community in New Mexico
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Tesla sales bounce back in Q3 but fall short of estimates
Allies aim for risky Russian oil price cap as winter nears
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Sell every Stock except ONE (Ad)
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Denmark says Nord Stream 1 pipelines stop leaking
Sell every Stock except ONE (Ad)
Brazil holds historic election with Lula against Bolsonaro
US shift away from coal hits tribal community in New Mexico
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Tesla sales bounce back in Q3 but fall short of estimates
Allies aim for risky Russian oil price cap as winter nears
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Sell every Stock except ONE (Ad)
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Denmark says Nord Stream 1 pipelines stop leaking
Sell every Stock except ONE (Ad)
Brazil holds historic election with Lula against Bolsonaro
US shift away from coal hits tribal community in New Mexico
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Tesla sales bounce back in Q3 but fall short of estimates
Allies aim for risky Russian oil price cap as winter nears
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Sell every Stock except ONE (Ad)
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Denmark says Nord Stream 1 pipelines stop leaking
Sell every Stock except ONE (Ad)
Brazil holds historic election with Lula against Bolsonaro
US shift away from coal hits tribal community in New Mexico
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Tesla sales bounce back in Q3 but fall short of estimates
Allies aim for risky Russian oil price cap as winter nears

Take Any Dip as an Opportunity to Buy Visa

Take Any Dip as an Opportunity to Buy Visa Visa (NYSE:V) is quickly earning the reputation as a classic buy-on-the-dip stock. The payment technology company most recognized for their credit cards of the same name is up 8% for the year and over 23% in the last 12 months.  

But that’s not telling the full story. If you had bought and held Visa stock five years ago, you would be sitting on gain of over 200%. And that doesn’t take into account the company’s dividend which has increased in each of those five years. That means your total return was even higher.  

However, with the card now near its all-time high set early in July, what is the outlook for Visa going forward? I see it several bullish catalysts that should make every dip a buying opportunity. 

Tinkering With Fintech 

Earlier this year, Visa’s attempt to acquire Plaid, the U.S. open banking platform was blocked by regulators over concerns that the company would hold a monopoly in the digital debit card space. Undeterred, Visa recently acquired Tink, a European-based open banking platform. The acquisition of Tink will provide Visa with an additional revenue stream. 

As the pandemic made very evident, there are millions of individuals who are now doing a significant amount, if not all, of their banking through avenues other than traditional banking. This is being facilitated by the growth of financial technology (I.e. fintech) solutions that make it much easier for companies such as PayPal (NASDAQ:PYPLto operate like a traditional bank. This is particularly true for small businesses and participants in the gig economy.  


Consumers Have Money (and Credit) to Spend 

One year ago, Americans were all juiced up with nowhere to go. Direct stimulus payments to millions of Americans combined with a lack of entertainment options put many Americans into savings mode. And that included paying down credit card balances.  

This meant that there was a significant amount of dry powder on the sidelines when the economy finally reopened. And in the world of e-commerce, Visa is accepted and welcome. The company’s first quarter results showed an increase in both payments volume and in the number of processed transactions.  

That number should only increase as more states have relaxed Covid-19 restrictions. The laggard at this time is cross-border payments. With the uneven international rollout of the vaccine along with increasing concern over the Delta variant, this may remain an obstacle to the company’s growth.  

However, overall revenue (and earnings) should continue to build off the first quarter’s strong numbers. And with the company likely to increase its swipe fees in 2022, that will offer even more opportunity for growth.  

On the Leading Edge of Crypto Payments 

Visa has been accepting crypto payments for some time. However, the company recently announced that over $1 billion of cryptocurrency was purchased through the company’s crypto-linked cards in the first six months of 2021. And Visa executives believe that cryptocurrency could make a significant dent in the $18 trillion that consumers spend every year using cash or checks.  

One way that Visa facilitates this growth is by allowing consumers to make transactions in USD Coin (CCC:USDC). This is what’s known as a stable coin that is powered by the Ethereum (CCC:ETH) blockchain.  

And this facilitates cryptocurrency transactions by eliminating the need to convert cryptocurrency into fiat money. Over the next few years, Visa is planning to expand its menu of stable coins. This is welcome news to traditional banks who are exploring adopting their own digital currencies. And that means that Visa will likely be top-of-mind to get this business.  

Currently Visa partners with Circle, BlockFi and Coinbase (NASDAQ:COIN) to facilitate cryptocurrency transactions at more than 70 million merchants worldwide.  

Buy the Dip and Enjoy the Ride 

V stock is forming a bullish ascending pattern of higher highs and higher lows. With support and resistance both increasing, it's not unrealistic to see the stock reach $260, which would be a gain of over 10% from the stock’s current level. 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Visa (V)
3.1118 of 5 stars
$177.65-1.3%0.84%26.20Moderate Buy$257.64
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Visa right now?

Before you consider Visa, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Visa wasn't on the list.

While Visa currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Chris Markoch

About Chris Markoch

Contributing Author: Retirement, Individual Investing

Chris Markoch is a freelance financial copywriter with over five years of experience covering various aspects of the financial markets. You may find his writing a little different than other stock articles you’ve read. And that’s OK with him. Chris doesn’t have a traditional finance background. What he does bring to the table is a strong business and marketing background having worked for agencies that serviced Fortune 500 companies. With that in mind, he isn’t overly impressed with what companies say, and more focused on what they do. And because buyer behavior dictates so much of what happens with a stock, Chris always keeps the end consumer close in mind. Chris has been writing for MarketBeat since 2018.

Contact Chris Markoch via email at CTMarkoch@msn.com.
Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFed Raises Rates: 3 Stocks to Watch Newmont Mining, Walmart, AMC

Axel Merk, President and CIO of Merk Investments has three very different stocks he frames within the current market and economic conditions.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.