Visa (V) is an attractive stock, largely because it generates revenue without selling fancy products or other particularly nuanced value offerings. Rather, V processes payments, making life easier for businesses, consumers, and everyone else.The beauty of V’s business is it has the potential to expand with ease across posterity in unison with seemingly inevitable population growth and economic expansion. V is venturing into the crypto space, meaning it is willing to do whatever is necessary to expand its market share. However, V isn’t exactly doing anything particularly special. After all, there are plenty of players in its increasingly crowded payment processing space. However, there is an argument to be made that V is also a fintech play.

Below, we provide a closer look at V, helping investors determine whether the stock is a buy, sell or hold. Without further ado, here’s what investors should know about V.

V Points of Note

V has a fairly lofty forward P/E ratio of 39.52. However, V is priced merely $11 below its 52-week high of $228.23, making its somewhat high forward P/E that much more tolerable. V’s business model is centered on an ever-increasing number of transactions resulting from a worldwide economy and human population continuing to expand.

All in all, V has slightly more than half of all market share in terms of credit card network purchases. In fact, this market share is 30% higher than the second-highest player in the space. V’s business model is also unique in that it is not susceptible to lending risk. The company refuses to extend loans to customers. As a result, V doesn’t have to stockpile cash. This is precisely why V’s margins are extraordinarily high. In short, V makes good money by greasing the wheels of the economy, facilitating payments, and making it that much easier for businesses to satisfy consumers’ needs and desires.

V’s Crypto Foray

V will soon start accepting cryptocurrency payments through its network. The crypto transactions will commence in the form of processing payments with USD Coin via Ethereum’s blockchain. This “stablecoin” is a form of crypto tied to a conventional financial asset. In this situation, that asset is the American dollar. Those who are unfamiliar with crypto will find it interesting to learn Bitcoin is not considered a stablecoin.

Investors can only guess how far V will go down the crypto rabbit hole. If it turns out that crypto is the currency of the future, V certainly has the inside track to continue its market dominance. However, if crypto is dismantled by the government or flops years or even decades from now, V’s efforts in this niche will have been in vain. Those who are knowledgeable about economics, digital currency, and alternative value stores insist crypto is here to stay, meaning V’s investment in the emerging technology will likely prove quite prudent.

The Analysts’ Take on V

The analysts are bullish on V, setting an average target price of $245.14. If V jumps to this price, it will have increased by more than 13%. The highest analyst target price for the stock is $297.

Of the 41 analysts who issued recommendations on V, none believe it is a Sell or Strong Sell. Exactly 13 of the analysts consider V a Strong Buy, 22 consider it a Buy, and six consider it a Hold.

V’s POWR Ratings

V isn’t exactly a POWR Ratings monster. The stock has a C grade as a whole. V has Bs in the Quality, Sentiment, Momentum, and Stability components. Click here to learn how V fares in the Value and Growth Components.

Of 49 publicly traded companies in the Consumer Financial Services space, V is ranked 15th. You can learn more about the stocks in the Consumer Financial Services sector by clicking here. The sector has an overarching POWR Grade of C.

Buy, Sell or Hold?

V is a Hold. The stock is nearing its 52-week high and its forward P/E ratio is elevated. Wait for shares of V to pull back to lower price levels before establishing a position.