10 Best Major Stocks to Buy According to Hedge Funds

6. Visa Inc. (NYSE:V)

No. of Hedge Fund Holders: 165

Visa Inc. (NYSE:V) is a multinational payment card service company that offers a wide range of related services and products to its consumers. The company’s growth is largely driven by the global shift towards digital payments, a trend fueled by technological advancements. According to the Federal Reserve, cash use plunged to 16% of transactions in 2024, indicating the growing preference for digital payments. The newer generation prefers digital payments, thus driving growth for card payment service providers.

On February 3, Barclays analyst Ramsey El-Assal raised the price target on V shares from $361 to $396, maintaining an Overweight rating on the stock. The analyst upgraded the price target on Visa shares following another strong quarter. In fiscal Q1 2025, the company posted $9.5 billion in revenue, up by 10% year-over-year. Visa Inc. (NYSE:V) processed 63.8 billion transactions in Q1 FY2025, reflecting an 11% growth from a year ago. Visa’s payment volume also experienced a 9% year-over-year increase on a constant-dollar basis.

Visa dominates the card market and continues to have a strong cash position. By the end of Q1, the company had over $16 billion in cash and cash equivalents, while operating cash flow reached $5.4 billion, up from $3.6 billion in Q1 FY2024. During the quarter, the company returned over $5.11 billion to shareholders through dividends and share buybacks.