5 Best Cash App Stocks To Buy Now

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 159

Visa Inc. (NYSE:V) is a world leader in digital payments, enabling transactions between users, merchants, governments and businesses in more than 200 countries and territories around the globe. In 2021, the company’s services were used by more than 80 million merchants worldwide, which showed a 14% year-on-year growth.

On May 17, Goldman Sachs analyst Will Nance initiated coverage of Visa Inc. (NYSE:V) with a ‘Buy’ rating and a $282 price target, implying a 43% upside. The analyst also added the company shares to the firm’s ‘Americas Conviction List’. He sees the firm as a global leader with “attractive leverage to the long-term secular growth driver from payment electronification.”

According to the Q1 database of Insider Monkey, 159 hedge funds held $28.07 billion worth of positions in Visa Inc. (NYSE:V). This shows growing investor confidence in the company over the previous quarter, where 142 hedge funds were long on the company shares. With a stake worth $19.94 billion, Adam Capital was the most prominent shareholder of Visa Inc. (NYSE:V) at the close of the first quarter.

The firm’s EPS for the first quarter stood at $1.79, coming in above estimates by $0.14. $7.19 billion in revenue for the quarter was also recorded above market estimates by $366.9 million, signalling year-on-year growth of 25.48%.

Here is what Baron Funds, an investment firm, had to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:

“Shares of global payment network Visa, Inc. (NYSE:V) were up 2.5% on strong quarterly results with 24% revenue growth and 27% EPS growth. Payment volume grew 20% with notable strength in cross-border volumes as travel activity rebounded from depressed levels. Management raised full-year guidance to reflect high-teens revenue growth. Shares also likely benefited from a “flight to safety” during a volatile quarter for equities. We continue to own the stock due to Visa’s long runway for growth underpinned by the continued migration from cash transactions to card/digital and strong competitive advantages, operating in a duopoly with Mastercard.”