#4 - Visa (NYSE:V )
The bullish case for Visa (NYSE:V) is that the company is now part of a broad category of companies known as payment processors. While it’s true that the company will continue to be well-known for its iconic credit cards, it has a toe in a lot of “verticals” including the realm of peer-to-peer payments, which puts it in competition with PayPal (NASDAQ:PYPL), Apple (NASDAQ:AAPL), and Block (NYSE:SQ).
However, for the rest of 2022 and 2023, inflation is likely to be the story. And as data shows, consumers are breaking out their plastic to pay for travel. And, less fortunate, some consumers need to use their credit cards to manage inflation.
Either way, it’s likely to bode well for the company’s future revenue and earnings, which are both at record levels. While it’s unlikely that Visa will continue to produce over 20% revenue growth in 2023, it did offer revenue guidance in the mid-teens. That would be enough to justify the company’s stock price even as it trades at around 29x earnings as of this writing.
About Visa
Visa Inc operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services.
Read More - Current Price
- $272.46
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 20 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $303.76 (11.5% Upside)
