5 Best DOW Stocks To Buy According To Hedge Funds

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 142

On April 26, Visa Inc. (NYSE:V) reported solid earnings for the fiscal second quarter of 2022. According to the company’s report, Visa Inc. (NYSE:V) saw revenue growth of 25.48% year over year and generated quarterly revenues of $7.19 billion, exceeding revenue estimates by 366.88 million. Moreover, the company reported earnings per share of $1.79, beating estimates by $0.14.

Shortly after Visa Inc. (NYSE:V) released earnings, Morgan Stanley analyst James Faucette raised his price target on the stock to $284 from $279 and maintained an Overweight rating on the shares. Faucette views upside for Visa Inc. (NYSE:V), noting that the payments giant exhibited continued signs of travel recovery as its cross-border travel volumes recorded impressive growth. The analyst also raised his EPS estimates on Visa Inc. (NYSE:V) by 2% for the fiscal years 2022 and 2023.

Insider Monkey spotted Visa Inc. (NYSE:V) on 142 hedge fund portfolios at the close of Q4 2021. The total stakes of these hedge funds in the company amounted to $29.29 billion, up from $26.16 billion in the preceding quarter with 143 positions. Hedge funds are stacking up Visa Inc. (NYSE:V) and analysts are becoming bullish on the stock, which makes Visa Inc. (NYSE:V) the second-best DOW stock to buy according to hedge funds.

As of the end of this March, TCI Fund Management is the most bullish hedge fund on Visa Inc. (NYSE:V) having stakes worth $4.41 billion in the payments giant. The investment covers 11.99% of its 13F portfolio.

Wedgewood Partners, an investment management firm, mentioned Visa Inc. (NYSE:V) in its recently published first-quarter 2022 investor letter. Here is what experts at Wedgewood had to say:

“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American reengaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparallel scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”