5 Stocks to Buy According to Kevin McCarthy’s Breakline Capital

2. Visa Inc. (NYSE:V)

Breakline Capital’s Stake Value: $7,335,000
Percentage of Breakline Capital’s 13F Portfolio: 8.42%
Number of Hedge Fund Holders: 166

Visa Inc. (NYSE:V) is one of the companies in the payments sector. As of June 30, the company’s credit and debit cards were being used in more than 3.9 billion transactions in over 200 nations. Even though Visa Inc. (NYSE:V) ceased operations in Russia in March 2022, Visa (NYSE:V) reported on August 30 that its U.S. payments volume increased 11% year on year in August. In addition, Visa Inc. (NYSE:V) has increased its dividend every year since it went public in 2008, which is appealing to income seekers. Its most recent quarterly dividend was $0.375 per share.

On August 16, Daiwa analyst Kazuya Nishimura cut his price objective on Visa Inc. (NYSE:V) from $230 to $225 and downgraded the stock from ‘Outperform’ to ‘Neutral.’ Visa continued to grow positively as cross-border travel increased. Still, Nishimura argued there are fewer prospects for profitability to exceed market expectations now that border barriers have been virtually lifted, except some regions of Asia.

Visa Inc. (NYSE:V) is getting the attention of the smart money, as 166 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the second quarter, up from 159 funds a quarter earlier. Breakline Capital also bought about 37,255 shares of Visa Inc. (NYSE:V) in the second quarter of 2022.

Among the hedge funds being tracked by Insider Monkey, TCI Fund Management is a leading shareholder in Visa Inc. (NYSE:V), with 19.92 million shares worth more than $3.92 billion.

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, mentioned Visa Inc. (NYSE:V) and discussed its stance on the company. Here is what the fund said:

“Visa and Mastercardhave both been beneficiaries of the move away from cash over the course of the pandemic with the consequence that forward- looking opportunities for further penetration of card payments are lower than a couple of years ago. Moreover, cross-border payments – which were badly impacted by lockdowns – strongly recovered in 2021 and for both businesses are at or near to pre-COVID levels.”