5 Best Low Risk Stocks To Buy In 2022

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1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 166

Beta Value: 0.92

Visa Inc. (NYSE:V), an American multinational payments technology firm, is one of the most notable low risk stocks to invest in. On October 19, Visa Inc. (NYSE:V) announced that it has partnered with business-to-business payments firm Thunes to allow individuals and small businesses t0 transfer money globally to 78 digital wallet providers. That enables Visa Direct to reach almost 7 billion endpoints, including over 3 billion cards, more than 2 billion accounts, and 1.5 billion digital wallets.

On October 19, Jefferies analyst Trevor Williams maintained a Buy recommendation on Visa Inc. (NYSE:V) but slashed the price target on the shares to $220 from $250. Though he expects a larger Q3 beat from MasterCard, he prefers Visa Inc. (NYSE:V) into Q3 earnings reports from the payments processors, the analyst told investors in an earnings preview note. He also sees more valuation support at Visa Inc. (NYSE:V).

According to Insider Monkey’s data, 166 hedge funds held stakes worth $24 billion in Visa Inc. (NYSE:V) at the end of June 2022, compared to 159 funds in the prior quarter worth $28 billion. Chris Hohn’s TCI Fund Management is the biggest stakeholder of the company, with nearly 20 million shares valued at $4 billion. 

Here is what Wedgewood Partners specifically said about Visa Inc. (NYSE:V) in its Q3 2022 investor letter:

“Visa Inc. (NYSE:V) continues to report strong double-digit growth in payment volumes throughout the first two months of the calendar third quarter. The stock suffered after concerns about potential adverse legislation related to its credit card routing practices began to surface. Similar legislation related to the Company’s debit routing practices was passed into law back in 2010. Not unlike the previous legislation, the Company’s value proposition to merchants, consumers and bank-issuing customers and acquirers is robust enough to help blunt the potential effects the legislation might have in the near term. Over a multiyear time horizon, it would be quite difficult for any currently non-existent or even sub-scale credit routing network to add the value that Visa (or MasterCard) can already add today.”

You can also take a look at 10 Cheap Insurance Stocks To Buy and 11 Best High Beta Stocks To Buy Now

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