1 Financial Stock in the Buy Zone Right Now

NYSE: V | Visa Inc. CI A News, Ratings, and Charts

V – Payment technology major Visa (V) reported substantial revenue and earnings growth in the last quarter despite geopolitical and macroeconomic headwinds impacting most sectors. Analysts expect it to continue reporting strong revenue and EPS growth. So, we think it could be wise to buy the stock now. Read on….

The financial transaction services industry is well positioned to gain due to the widespread adoption of contactless payments, the rise of e-commerce, and changing spending trends.

Visa Inc. (V) operates as a financial transaction services company that helps facilitate digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.

It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, platforms, and value-added services. It provides services under Visa, Visa Electron, Interlink, VPAY, and PLUS brands.

Despite the macroeconomic uncertainty, exchange rate headwinds, and the business suspension in Russia, V surpassed consensus EPS and revenue estimates in the last reported quarter. Its EPS beat analyst estimates by 13.3%, while its revenue came 2.9% higher than the consensus estimates.

The company reported strong payments volume, cross-border volume, and processed transaction growth in the last reported quarter. V’s payments volume increased 12% year-over-year while total cross-border volume rose 40% year-over-year. Its processed transactions also rose 16% year-over-year in the last reported quarter.

Cross-border travel volume surpassed 2019 levels for the first time since the onset of the pandemic. V’s Chairman and CEO, Alfred F. Kelly, Jr., said, “While the economic outlook is unclear, we remain confident in our ability to execute with discipline and expand Visa’s role at the center of money movement.”

V’s stock has declined 7.4% in price year-to-date and 12.4% over the past year to close the last trading session at $200.71.

Here’s what could influence V’s performance in the upcoming months:

Robust Financials

V’s net revenues increased 18.7% year-over-year to $7.28 billion for the third quarter ended June 30, 2022. The company’s non-GAAP net income increased 29% year-over-year to $4.20 billion. Its non-GAAP EPS came in at $1.98, representing an increase of 33% year-over-year. Also, its operating income increased 2.1% year-over-year to $4.14 billion.

Favorable Analyst Estimates

V’s EPS for fiscal 2022 and 2023 is expected to increase 25.7% and 13.1% year-over-year to $7.43 and $8.41, respectively. Its revenue for fiscal 2022 and 2023 is expected to increase 20.7% and 11.3% year-over-year to $29.09 billion and $32.40 billion, respectively. It surpassed Street EPS estimates in each of the trailing four quarters.

Higher-than-industry Profitability

In terms of trailing-12-month gross profit margin, V’s 97.33% is 93.4% higher than the 50.33% industry average. Likewise, its 70.47% trailing-12-month EBITDA margin is 440% higher than the industry average of 13.05%. Furthermore, the stock’s 51.99% trailing-12-month net income margin is significantly higher than the industry average of 4.25%.

POWR Ratings Show Promise

V has an overall rating of B, equating to a Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. V has a B grade for Quality, in sync with its higher-than-industry profitability.

It has a B grade for Sentiment, consistent with favorable analyst estimates. Furthermore, it has a beta of 0.90, justifying its B grade for Stability.

V is ranked #7 out of 48 stocks in the Consumer Financial Services industry. Click here to access V’s Growth, Value, and Momentum ratings.

Bottom Line

Despite the various headwinds plaguing the industry, V reported strong growth in its payments volume, processed transactions, and cross-border volumes. The company is well positioned to benefit from the growing popularity and acceptance of digital and contactless payments.

Given its strong financials, favorable analyst estimates, and higher-than-industry profitability, it could be wise to buy the stock now.

How Does Visa Inc. (V) Stack Up Against its Peers?

V has an overall POWR Rating of B, equating to a Buy rating. Check out these other stocks within the Consumer Financial Services industry with a B (Buy) rating: EZCORP, Inc. (EZPW), Regional Management Corp. (RM), and Atlanticus Holdings Corporation (ATLC).

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


V shares fell $0.50 (-0.25%) in premarket trading Friday. Year-to-date, V has declined -6.89%, versus a -15.08% rise in the benchmark S&P 500 index during the same period.


About the Author: Dipanjan Banchur


Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
VGet RatingGet RatingGet Rating
EZPWGet RatingGet RatingGet Rating
RMGet RatingGet RatingGet Rating
ATLCGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


What Happens After 6,000 for Stocks?

The S&P 500 (SPY) has the petal to the medal after the election and 2nd Fed rate cut. However, stocks are now pressed up against serious resistance at 6,000 which begs the question of what happens next? Investment pro Steve Reitmeister shares his timely market views including a preview of his top 10 stocks. Get the full story below...

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Stock Investing AFTER the Election

The S&P 500 (SPY) has been stuck under the highs awaiting the election results. The biggest mystery is how soon results will be finalized. The second biggest concern is what the Fed will do at their 11/7 meeting. Steve Reitmeister shares his views on these things along with fresh market outlook and preview of his top 10 stocks to buy now.

Read More Stories

More Visa Inc. CI A (V) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All V News