7 Stocks to Buy if Inflation Remains Higher for Longer - 3 of 7

Visa Inc. (NYSE: V) is evidence that consumer spending is holding up, even among those most impacted by inflation. Visa delivered higher year-over-year revenue and earnings in every quarter of its 2024 fiscal year.  

This performance came despite what would appear to be nearly impossible comparisons. In its most recent quarter, Visa also rewarded shareholders with $5.8 billion in share repurchases and a seven-cent increase in its dividend, which was an increase of over 7%. 

At this point, it’s nearly impossible to bet against the consumer heading into 2025. And even if there is a softening in lower-income consumers, inflation has been less of a problem with higher-income earners. It’s also important to remember that Visa’s role as a payment servicing provider means it does not have to set aside money for credit losses, delinquencies, etc.  

And although the consensus price for V stock is only 2.5% higher than the stock’s closing price on December 16, 2024, two analysts have raised their price target for the stock to $360 and $375, respectively, which would market gains of over 15% or 20%.