5 Under-the-Radar Stocks That Are on The Move

1. Visa Inc (NYSE:V)

Upside Potential: 15.83%
Current Price as of July 20: $240.68
52 Week High: $245.37
Number of Hedge Fund Holders: 173

Visa Inc (NYSE:V) is another payment giant that Ethridge is maintaining a close watch on in the financial sector. The company generates significant fees for every transaction people make using a Visa credit or debit card. Like Mastercard, Etheridge believes the company has a recession-proof business model that affirms its long-term prospects.

Visa Inc (NYSE:V) is one of the best under-the-radar stocks, boasting a high-quality business in a thriving payment industry. Consumers in economically developed countries like the US are likely using Visa cards to make payments. With the annual global payments industry payments expected to surpass $3 trillion, Visa should be one of the beneficiaries.

While the stock is up by about 16% year to date, it is close to its 52-week high of $245.37, with momentum to the upside building up. Analysts on Wall Street have an average price target of $278.79, implying a 15.83% upside potential from current levels.

As of the end of the first quarter, there were 173 hedge funds in Insider Monkey’s database that held stakes in Visa Inc (NYSE:V), compared to 177 funds in the prior quarter. TCI Fund Management, with 19.29 million shares, is the biggest stakeholder in the company.

In its investor letter for the second quarter of 2023, Manole Capital Management shared its thoughts on Visa Inc. (NYSE: V) with the following statement:

“We like to start out all of our discussions by telling investors who we are. We are FINTECH investors, and we define Fintech as “anything utilizing technology to improve an established process.” We realize that half of Fintech is financial, but we don’t invest in traditional, credit sensitive banks. Having managed money during the Financial Crisis, we learned firsthand how certain opaque and balance sheet intensive financials could go bankrupt or insolvent.

We prefer transaction-based businesses, generating recurring revenue, with sustainable margins, and significant cash flow. From our perspective, the perfect example of a FINTECH business is the secularly growing payments industry. Names like Visa Inc. (NYSE:V) or Mastercard, that generate revenue and profit per swipe or transaction, without the underlying credit sensitivity or risk associated with that underlying line of credit.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 11 Cheap Chinese Stocks to Buy According to Analysts and 12 Best Performing Bank Stocks in 2023.