Some investors and analysts are doubtful about whether the good times for Visa Inc (NYSE:V) can continue through next year.
After all, the stock has already surged early 45% in 2017. That’s a massive move for a mega cap stock, so it’s natural to start to wonder if Visa shares may need a cooling off period here.
However, a number of internal and external factors remain highly bullish for the company heading into 2018. As The Motley Fool points out, record earnings, the rise of online payments, and massive industry growth could combine to propel even more gains next year:
A Nilson report forecasts that the number of payment cards will increase by 16% from the end of 2015 to 2020, and it’s safe to say a great many of those rectangles will bear market leader Visa’s brand name. Meanwhile, the International Monetary Fund predicts that global GDP will rise a very healthy 3.7% in 2018.
So, numerous signs indicate that Visa has more high-growth quarters ahead of it. I wouldn’t be surprised at all if 2018 indeed turns out to be its best year yet.
Without question, payments processing is a great place to be these days. Visa perhaps stands to benefit the most from a bevy of positive trends in the industry, and that makes the stock a continued buy — despite its relatively high valuation.
Visa Inc shares fell $0.59 (-0.52%) in premarket trading Tuesday. Year-to-date, V has gained 44.70%, versus a 21.79% rise in the benchmark S&P 500 index during the same period.