He owns some of the fintechs, new economy stocks. Focus on where's the growth going to be in the future. We're going to need the growth, especially if inflation hangs around for a while.
vs. PayPal PP will be in the penalty box for a long time. Compare this to Visa, he's rooting for an increase in international travel and it's happening. He knows what he's getting with Visa.
Company is very strong with strong trends behind it.
Cash to card conversion + increasing traffic post Covid-19 big tailwind.
Very well run company with strong management.
Crypto and blockchain will only benefit the company.
(A Top Pick Sep 16/21, Down 7%) Transition to digital payments will continue. International reopening will add revenue. No balance sheet risk. Brings in higher fees on higher purchase prices from an inflationary environment. (Analysts’ price target is $260.00)
(A Top Pick Aug 12/21, Down 9%) Still likes it. It's a play from cheque and cash to digital payments. They are the largest player globally. Volumes tanked during pandemic, but saw an increase in e-commerce and small purchases like coffee shops. Visa has seen a rebound in international travel, though still below pre-pandemic. Will benefit when China opens up. A headwind are regulators saying that Visa and MC control too much of this industry, so keep an eye on this. Visa has expanded in Europe, which could offset any weakness in the U.S.
They get a tiny piece of each transaction. Global presence with great growth potential in Asia. There are recessionary fears, but now is a chance to buy a world-class business as shares have come down. When the economy roars back, so will Visa shares.
(A Top Pick Jun 14/22, Up 12%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with V is progressing well. To remain disciplined, we now recommend trailing up the stop (from $165) to $190.
(A Top Pick Apr 16/20, Up 31%) Strong business franchise that has excellent long term prospects.
Increase in cross border traffic with end of pandemic, will help company grow revenues.
27x earnings multiple is lower than what is has historically traded at.
Will continue to hold.
The fear is that if there's a recession, then payment transaction volume will drop. But a recession will be temporary, if it happens. Their valuation has fallen to somewhere more reasonable. Their earnings have done quite well. The PE has fallen to the low-30s to low-20s which is much more acceptable.
Stockchase Research Editor: Michael O'Reilly Holding the largest market share of US consumer spending for transaction processing along with MA, we select V as a TOP PICK. Currently V is valued slightly better at 30x earnings and 11x book, compared to MA at 34x and 43x, respectively. The company has been increasing dividends for 14 consecutive years and it is backed by a payout ratio under 25% of cash flow. Recently reported earnings beat expectations and supports a 42% ROE. We would trade this with a stop loss at $165, looking to achieve $268 -- upside potential over 39%. Yield 0.75% (Analysts’ price target is $268.05)
Cross-border spending is back. Good siteline to the economy, saying no recession. Tailwinds of the digital economy. There are 2 railroads, V and MA, and you have to be on them. Great inflation play. Yield is 0.71%. (Analysts’ price target is $266.24)
They benefited from e-commerce shopping during the pandemic. They've seens a strong rebound in US domestic travel above pre-Covid levels. International travel, ex-Asia, is starting to return to pre-Covid levels. Visa expects to grow 18% this year, after removing Russia (was 4% of earnings). EPS to grow even higher. More business travel is also a tailwind. (Analysts’ price target is $266.92)
Visa Inc. is a American stock, trading under the symbol V (previously V-N on Stockchase) on the New York Stock Exchange (V). It is usually referred to as NYSE:V or V