Visa Inc. (V)

Shares flattish YTD due to higher interest rates and inflation. Up 45% over past 5 years, beaten S&P over last 10 and 15 years. With prospect of Fed cutting rates, shares could grow again. A bullish opportunity. Strong free cashflow, reasonable valuation, excellent margins. Yield is 0.8%.

Reported solid Q3 with 10% YOY revenue growth. Cross-border volume up 14% YOY was a key growth driver. Stock buybacks. Her target is $300, so another 12-13% upside.

Recent earnings will slightly disappointing, and like many companies is seeing some growth slowdown. AmEx is cheaper. But Visa is a good play in payments. 

More and more credit defaults in this business. Uptrend of higher highs and lows was broken. Now seeing lower highs and lower lows, never good. Old breakout of 2021 will now probably act as support level around $240, see if it bounces there.

Don't predict, just prepare. Because if it doesn't bounce off $240, you have lots of pain ahead.

He owns both. Visa is more about dividend growth, but Mastercard is the preferred card in Europe. It's a dead heat. MA was ahead of its peers in tech by introducing fraud-prevention measures, but both consider themselves fintech companies. Bother could be under pressure if consumers spend less, but so earnings have been strong.

Largest unit processor in the world. Big competitive advantage. Societal shift to more cashless transactions, we're still only in the middle. Healthy profit margins. April revenues beat estimates, transactions increased a healthy 31%, total volume expected to grow by high single-digits this year. Yield is 0.77%.

Up around 11% over past 12 months, slightly lagging index. Averaged 9% annually over last 5 years. Reliable sales stream and operational model. Willing to adopt new trends. Up 400% over past decade, doubling S&P 500's performance. Her price target is ~$311, implies 15% potential upside. Scores 10/10 fundamentally.

Long-term theme of going from cash/cheques to digital currency, many countries still need to migrate over. Visa benefits whether it's credit or debit. Also developing other services for customers, and that's growing. Likes it here.

An analyst downgraded it today, commenting on its future growth, but he feels it isn't talked about enough. It continues to be the asset-lite and risk-free fintech play. It's consistent.

Other payments stocks are sexier, but you don't know if they will work. You need to be in the payments sector as more payments go digital. Visa is the largest and most profitable in this space. Has little capex, they buy back shares and gushes cash. Recent negative headlines about anti-trust and fines pushed the valuation down to a reasonable below 25x instead of a normal 30x. 

For 2024, 2025 and 2026, 2027, 2028 EPS is expected at: $9.95, $11.17, $12.63, $14.34 and $16.64, for a five year growth rate of 67% (inclusive, not annualized). Sales for the same periods: $35.9B, $39.7B, $43.7B, $47.5B, $52.0B (growth 44%). Given its global market share position, blue-chip status and performance history, we would be comfortable buying today. A better price might be $235 if one wanted to time things and wait for a possible correction. 
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Excellent company with very strong brand. Sales up 10% YoY. 2024 guidance remains the same. Q1 guidance was recently beat. Excellent technology with sticky user base. Consumers appear to be strong. P/E not cheap, but earnings continue to grow. 

Loves their predictable earnings, they're entrenched internationally, and society keeps moving towards cashless. Visa enjoys a duopoly with Mastercard. It no longer trades at a high multiple, now only 27x forward PE at a roughly 5% growth rate.

Chugging along with double-digit topline and bottom line growth. Earnings have doubled over past 5 years. People are now travelling more, doing more online shopping. When's the last time you used cash? Exactly. That's the thesis for this name. Valuation not that expensive given the high-quality business. Yield is 0.7%.

See his comments about Mastercard. A big growth factor is cross-border travel, which is not going away. They make a lot of money here.  The valuation has declined a but, though a little expensive, but this stock is top quality. A long runway ahead.

12-month price target for Visa of $315. 12-month target for MA is $490. It's really a flip of the coin right now. Both have reasonable runway. Lots of people do pair trades, and right now that's long MA and short Visa.

He owns Visa. It's much larger, larger than all of its competition put together. Prefers its more international exposure, as that has greater growth potential. Could both become trillion dollar companies via organic growth and through potential valuation re-rating to return to mid-30 multiples.

MA is a very good competitor. Trades a few multiple points higher than Visa.