10 Unrivaled Stocks of the Next 10 Years

3) Visa Inc. (NYSE:V)

Number of hedge fund holders: 163

Visa Inc. (NYSE:V) operates a retail electronic payments network. It provides global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities.

Undoubtedly, the company is the leader in the payments industry, and its strong network effect and pricing power make up the wide economic moat. Millions and billions of Visa cards are being used around the world which are accepted at over 130 million merchant locations. If customers using Visa continue to increase, it will look more attractive to merchants as a result of a potentially big market. As and when merchants taking Visa cards increase, more and more customers will plan to use them.

Next, the company should continue to benefit from its large scale. As a result of this competitive advantage, Visa Inc. (NYSE:V) generates unmatched profits. In 3Q 2024, its GAAP net income sat at $4.9 billion or $2.40 per share, reflecting an increase of 17% and 20%, respectively on the YoY basis. Visa Inc. (NYSE:V) controls more than ~60% of the US market for credit and debit cards.

The company’s network has become more valuable due to the increase in places and ways in which it can be used. It primarily grows by tapping a greater share of global payment volume.

Bank of America reissued a “Neutral” rating on the shares of Visa Inc. (NYSE:V), giving the stock a $297.00 price target on 10^th July. As of the end of the second quarter of 2024, 163 hedge funds out of the 912 funds tracked by Insider Monkey had stakes in Visa Inc. (NYSE:V).

Aoris Investment Management, a specialist international equity manager, released its Q2 2024 investor letter and mentioned  Visa Inc. (NYSE:V). Here is what the fund said:

“Visa Inc. (NYSE:V) operates the world’s largest payments network, which facilitates the movement of money between merchants, financial institutions, consumers, businesses, and governments.

The company is best known for enabling consumers to make debit and credit card payments. In the year to September 2023, 4.3 billion Visa cardholders made 213 billion transactions on its network, to a total value of US$12.1 trillion.

Compared to cash and cheques, which are still widely used around the world, Visa’s network is a more convenient, secure, and ubiquitous way for consumers to pay. Visa has invested to reduce friction and fraud in the payments experience, to the benefit of both merchants and consumers…” (Click here to read the full text)