#6 - Visa (NYSE:V )
Visa (NYSE:V) stock was one of the largest movers during the pandemic. And the stock soared even higher in 2021 as pent-up demand unleashed the power of the consumer. 2022 has brought the stock back down to earth. However, it’s still outperforming the broader market.
One reason is that, despite rising interest rates, credit card use is rising as consumers are navigating record-high inflation. It’s also a reflection of the continuing shift towards digital payment solutions. And although they make up a relatively small volume, Visa gets outsized benefits from international transactions which are showing signs of picking up.
Fundamentally, the company posted free cash flow of $3.2 billion in its most recent quarter. That was up 1.6% from 2022 which was a year in which the company posted a record $14.5 billion in FCF. The company also paid down its long-term debt by 12.5%.
Visa does come in a bit on the expensive side. Its P/E ratio of 26.26 is above the sector average. However the company may have the growth to back that up. And its dividend which has a yield of 0.84% has been increasing for the last 13 years and currently pays out $1.50 per share on an annual basis.
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
- $309.92
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 25 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $321.74 (3.8% Upside)
