10 Unrivaled Stocks of the Next 5 Years

6. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 165

Visa Inc. (NYSE:V) is an American multinational payment card services corporation that operates a network of payment systems. As the world leader in digital payments, the company has a global footprint and a significant share of the market for credit and debit cards. It ranks among the top unrivaled stocks of the next 5 years.

Mar Vista Investment Partners, LLC, an investment management company, discussed Visa Inc. (NYSE:V) in its “Mar Vista Focus strategy” third quarter 2024 investor letter. The letter noted that Visa Inc. (NYSE:V) has a strong network that connects buyers and sellers globally and the company’s scale advantages prevent new competitors from easily disrupting the industry. The company directly benefits from the digitization of payments globally. While penetration rates and transaction volumes in developed markets may slow, the investment management firm expects that Visa Inc. (NYSE:V) will still manage to grow its revenue by 8-10% driven by growth in global consumer spending, the rise of electronic transactions, expansion into business-to-business transactions, and value-added services for clients.

The company’s leadership position is reflected in its strong financials with high operating margins of 68% and minimal capital expenditures at only 3-4% of sales. The investor letter also noted that Visa Inc. (NYSE:V) actively buys back its own stock and has reduced the number of outstanding shares by one-third over the last 15 years. Mar Vista Investment Partners, LLC believes that Visa Inc. (NYSE:V) will continue to repurchase 2-3% of shares outstanding annually.