10 Best Stocks to Buy According to Billionaire D.E. Shaw

7. Visa Inc. (NYSE:V)

D.E. Shaw & Co’s Stake Value: $645.92 Million

Number of Hedge Fund Holders: 165

Visa Inc. (NYSE:V) is one of the largest financial services players that operates as a payment technology company. It offers VisaNet, a processing network that enables payment transaction authorization, clearing and settlement. The stock is up by about 22% for the year, emerging as one of the best stocks to buy, according to billionaire D.E. Shaw.

Visa Inc.’s (NYSE:V) outperformance year to date shows the company outperforming the industry in various metrics. In its fiscal fourth quarter, it delivered $9.6 billion in revenues, up 12% year over year. The increase was driven mainly by an 8% increase in data processing revenues. Additionally, Visa benefits from increased payment volume, transaction processing, and cross-border volumes owing to expanded global operations. Consequently, Visa Inc.’s (NYSE:V) payment volume was up 8% in the fourth quarter due to increased operations in Canada, Europe, and Latin America.

Visa Inc.’s (NYSE:V) revenue has increased at a compound annual growth rate (CAGR) of 11%, and its earnings per share (EPS) increased at a CAGR of 16% between fiscal 2013 and fiscal 2023.

Here is what Qualivian Investment Partners said about Visa Inc. (NYSE:V) in its Q3 2024 investor letter:

“Visa Inc. (NYSE:V): FQ3 2024 revenues and EPS came inline versus consensus estimates with revenue and EPS growing 10% and 12% respectively. Payment volume increased by 7% and the highly profitable cross border volume increased by 14%. Operating margins at 67.1% missed consensus expectations at 67.4%. Management’s commentary on consumer spending for the back half of 2024 suggested a cautious but stable backdrop. Similar to our thoughts on MA, while we do not view V as immune to the macro backdrop, we continue to expect that over the longer term, it will continue to drive and benefit from the digitization of payments globally.