#7 - Visa (NYSE:V)
The last stock to consider as one to benefit from student loan forgiveness may seem like an odd choice. But there is some reason behind my selection of Visa (NYSE:V). In a November 2020 article in Forbes, Ron Shevlin made a compelling argument that first, credit card usage is far from dead. And second, as the economy improves, the millennial generation may be more likely to turn to credit cards. In addition to the economic recovery (and an absence of other debt may be considered an economic recovery), Shevlin points out the rewards programs and the prevalence of “credit builder” cards.
While I believe that initially, recipients of student loan forgiveness may use the money they spent on loan payments to pay down other credit cards. But if history teaches us anything it’s that credit card debt is not likely to go away. And if Visa embraces cryptocurrency as is expected, that will be another catalyst for V stock.
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
- $317.71
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 25 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $328.41 (3.4% Upside)
Although it’s unclear what the exact amount of any student loan forgiveness plan will be, it has become a question of when and how. President Biden has expressed a desire to have any form of student loan forgiveness to be a law that is passed by both houses of Congress. However, it’s possible that President Biden may act via executive order as has been his proclivity in the first weeks of his presidency.
And when these borrowers receive relief, we can only hope that the long-term effects will be at least partially blunted by a stimulus to the economy as these individuals put this money to work.
Right now, this is an area that’s not drawing much attention. The intention of this presentation is to turn your attention to some sectors and stocks that are worth keeping your eye on.
You may have other stocks you like better than the ones in this presentation. As always, you should do your own due diligence and invest accordingly.
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