Visa's Market Dominance and Long-Term Growth Make it an All-Weather Stock Worth Buying

Visa has been one of the best long-term growth stocks, with 19% annual returns over 15 years spanning recessions and bear markets.
Visa held up much better than the overall market in the 2022 downturn, only dropping 3% vs 19% for the S&P 500.
Visa's market dominance, asset-light business model, and high margins give it stability and allow it to invest during downturns.
Visa looks fairly valued now despite growth potential, with a P/E of 31, making it a good time to buy this all-weather stock.
Visa can continue growing through the digital payments shift given its strong brand, huge network, and capital to invest.

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Relevant topic timeline:

7/31/2023

Visa Is My 3rd Largest Position: I Was Bullish Back In 2016 And Remain So Today (NYSE:V)

Main financial assets discussed: Visa (NYSE:V) Top 3 key points: 1. The marketplace opportunity: Visa operates in a growing market for cashless transactions, both domestically and internationally. The trend towards digital payments is expected to continue, providing growth opportunities for Visa. 2. A solid management team: Visa has had a history of strong leadership, with CEOs who have made effective decisions and delivered strong financial performance. The current CEO, Ryan Mcinerney, is expected to continue driving the company's growth. 3. Company operations moving in the right direction: Visa has shown strong financial performance, with revenue and earnings growth, expanding margins, and shareholder-friendly activities such as share buybacks and dividend growth. Recommended actions: **Hold**. The article does not explicitly recommend buying, selling, or holding Visa shares. However, based on the positive outlook for the company and its strong financial performance, it suggests that Visa could be a valuable addition to a diversified portfolio. The author also mentions using a dollar cost averaging strategy to gradually invest in Visa shares, which implies a long-term holding approach.

8/30/2023

Visa Stock: IBD Stock Of The Day Breaks Out For Third Time This Year

Visa stock breaks out for the third time since April, with a 19% increase this year, as credit card giants Visa and Mastercard remain strong despite caution from retailers about slowing consumer spending.

9/9/2023

Visa Stock Continues to Outperform with Strong Dividend Growth and New Opportunities in Cross-Border Payments

Visa Inc., a powerful dividend growth stock, has consistently raised its dividend by 17% annually and boasts 14 consecutive years of uninterrupted dividend growth, making it a standout player in the world of dividend growth stocks. Additionally, Visa's financial strength, robust performance, and attractive valuation position it as a promising investment opportunity for long-term investors.

9/17/2023

Bitcoin Hits Milestone, Surpasses Visa in Annual Transaction Volume Despite Challenges

Bitcoin's annual transaction volume has surpassed that of Visa, marking a significant milestone for the decentralized cryptocurrency despite some nuances in comparing the two.

10/9/2023

Visa Delivers Market-Crushing Returns Through Recessions and Management Shifts as Digital Payments Expand

Visa's stock has outperformed the market by more than five times since its IPO in 2008, thanks to its success in the digital payment industry and its ability to allocate capital effectively, demonstrated by its consistently high ROIC, which has remained strong even during challenging times such as the pandemic and rising interest rates. Visa's investments in data security, financial software start-ups, and blockchain technology have also contributed to its growth, and with the ongoing shift towards digital systems, the company is well-positioned to continue generating significant returns on its investments in the future.

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Posted 9/14/2023, 9:15:00 AM