1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) is the best fintech stock to buy now. According to Insider Monkey’s database, 166 hedge funds are bullish on Visa. The payment technology company is widely acclaimed across the world for processing transactions through its VisaNet network.
The company’s share price has increased 22% over the last year, with one share worth over $275 now. Visa Inc. (NYSE:V)’s financial performance continues to remain robust. In April this year, the company announced that it beat estimates for the quarter, posting $4.66 billion, or $2.29 per share against the projected $4.26 billion, or $2.03 per share.
Wedgewood Partners shared optimism for Visa Inc. (NYSE:V)’s future trajectory in its Q1 2024 investor letter:
In the first quarter, the Company grew earnings per share +11% as payment volume growth was up +8% and cross-border payment grew a solid +16%, adjusted for currency. Beyond their consistent growth and execution, recent regulatory trends have caught considerable investor attention. The Company’s networks and value-added services drive enough economic value to bank customers and retailers that the addressable market for payments should continue growing at a healthy rate for many more years, regardless of recent regulatory changes. Visa’s value-added services can be extended to less-sophisticated, emerging non-Visa networks to help grow the overall payment ecosystem that makes up the vast global payment addressable market. For example, not long after debit interchange rates were regulated last decade, Visa began an aggressive push to allow non-bank 2inancial institutions access to Visa’s networks, which helped drive more interchange volume to banks and offset lower interchange rates. This was a key element that spawned the massive “Fintech” industry that exists today. We continue to expect Visa’s scale and breadth of service offerings will help them drive attractive growth at stellar margins along with the overall payments ecosystem.
Overall, Visa Inc. (NYSE:V) ranks first as the best fintech stock to buy. You can visit 10 Best Fintech Stocks To Buy Now to see the other fintech stocks that are on the hedge fund radar. While we acknowledge the potential of fintech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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