Jim Cramer’s Bold Predictions About These 10 Financial Stocks

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders In Q3 2024: 165

Date of Cramer’s Comments: 10-07-24/10-08-24

Performance Since Then: 14.8%

Visa Inc. (NYSE:V) is the largest credit card processor in the US as it commands 61% of the US market by purchase volume. As a result, the stock is dependent on consumer spending strength and low rates to drive higher transaction volumes. Higher spending led Visa Inc. (NYSE:V) to beat analyst revenue estimates of $9.49 billion in Q3 by posting $9.62 billion. Its shares soared by 2.9% after the earnings and then gained another 4.8% after President-elect Trump’s victory in the November election. Over the long term, Visa Inc. (NYSE:V) might have to pick up the pace with its global expansion efforts to counter the threat of fintech upstarts eating away its market share. The firm is also being sued by the Justice Department for alleged monopolistic practices and is on the backfoot when it comes to a $30 billion settlement with merchants. Here’s what Cramer said in October:

“… Look, it sells at 27 times earnings. I’m waiting for Visa to come down at a discount. You don’t have that. Right now, I have to tell you, Mastercard is actually doing a little better than Visa. But no, no need to add a position on that. That’s not the right basis. Just keep looking. It’s a great long-term stock and I think it always will be as long as this is well run as it is now.”

V was a financial stock Cramer was waiting to come down in October. While we acknowledge the potential of V as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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