Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, credit card giant Visa (NYSE: V ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Visa's business and see what CAPS investors are saying about the stock right now.
Visa facts
| Headquarters (Founded) |
San Francisco (1958) |
| Market Cap |
$58.1 billion |
| Industry |
Data processing and outsourced services |
| Trailing-12-Month Revenue |
$8.9 billion |
| Management |
Chairman/CEO Joseph Saunders
CFO Byron Pollitt
|
| Return on Equity (Average, Past 3 Years) |
10.7% |
| Cash/Debt |
$3.8 billion / $35 million |
| Dividend Yield |
0.7% |
| Competitors |
American Express (NYSE: AXP )
Discover Financial (NYSE: DFS )
MasterCard (NYSE: MA )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 4,870 members who have rated Visa believe the stock will outperform the S&P 500 going forward. These bulls include kpoeppel and "All-Star" pick compiler AllStarPortfolio, who is ranked in the top 15% of our community.
Just last week, kpoeppel listed several of Visa's positives:
Cash? What's that? Strong global brand that will probably outlive me. Acts as a toll road. Low capital costs. Growth at a very reasonable price.
Over the past three years, in fact, Visa has grown its top line at a brisk rate of 17% annually. That's much faster than that of rivals American Express (6%), Discover (9%), and MasterCard (10%).
CAPS member AllStarPortfolio, using a pick and pitch from HarryCarysGhost, elaborates on the bull case:
Basically this stock has been beaten down by the government. Yes there is uncertainty on how far they will go. But I highly doubt that this bill will take Visa down. So the shares look under priced to me right now. ...
Yes their earnings will drop slightly in the short term. But if you take a long term view this is a cash cow.
As we move forward into a cashless society, I think Visa will remain a leader in all monetary transactions.
I've said this before and I'll say it again -- When you buy Visa your getting a brand with a huge moat. No one says they have to pay off their credit card bill. They say they have to pay their Visa.
What do you think about Visa, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Visa? Add it to your watchlist.
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