#7 - Visa (NYSE:V)
The last company on this list of travel stocks to buy is Visa Inc. (NYSE: V). It's not a travel stock per se, but data shows that consumers continue to fund their travel expenses with credit cards. And as one of the leading payment processors, Visa is a logical choice for inclusion on this list.
But with a forward P/E ratio of around 28x, is Visa a good stock to own right now? The Visa analyst ratings on MarketBeat give the stock a Moderate Buy rating with a consensus price target of $303.76. That's only about an 8% upside. However, several analysts have raised their price targets since Visa last reported earnings, and several of those targets are far higher than the consensus.
It's also worth noting that Visa pays a growing dividend. While the yield of 0.74% as of May 2024 isn't impressive, the dividend has been growing for 16 consecutive years and has a payout ratio of just 23%, which is very sustainable.
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
- $285.25
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $310.22 (8.8% Upside)
The travel narrative is a two-part story. First, and perhaps most importantly, there is consumer demand. But second, you're looking for companies that are doing their part to ensure that consumers have an experience that makes them want to travel again. Many companies are also finding ways to integrate artificial intelligence (AI) into the customer experience in a meaningful way.
Travel is also an international sector. In fact, much of its growth is expected to come from the demand for travel overseas. In a decade or two, space tourism may even be part of this sector.
However, as is the case with most companies, it comes down to market share, revenue, and earnings. Those are qualities that are common to every company in this presentation.
MarketBeat makes it easy to find travel stocks to buy. Once you're on the Travel Stocks page, you can use the screening tools to sort stocks by the qualities that appeal to you most.
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