4-Star Stocks Poised to Pop: Visa

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Based on the aggregated intelligence of 110,000-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. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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's facts

Headquarters (Founded)

San Francisco (1958)

Market Cap

$77.75 billion

Industry

Data Processing and Outsourced Services

TTM Revenue

$6.72 billion

Management

CEO Joseph Saunders (since 2007)

CFO Byron Pollitt (since 2007)

CAPS members bullish on V also bullish on

Google (Nasdaq: GOOG)

MasterCard (NYSE: MA)

General Electric (NYSE: GE)

CAPS members bearish on V also bearish on

Citigroup (NYSE: C)

Lehman Brothers (NYSE: LEH)

Washington Mutual (NYSE: WM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 574 of the 616 All-Star members who have rated Visa -- some 93% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include tomk0508 and InvestorDeb, both of whom are ranked in the top 10% of our community.

In March, tomk0508 noted a few of Visa's big bullish qualities: "largest consumer payments system in the world, no credit risk on balance sheet, and significant pricing power on both the merchant and issuer side of their network. Sounds like an outperform to me."

A pitch just a few days earlier from InvestorDeb shared that positive sentiment, clearing up a few misconceptions about the financial stock:

Understand what you are buying here: Visa gets paid for processing debit and credit transactions. They are not responsible for the risk associated with default (except to say that those who lose their ability to charge are removed from their client base) ... Great exposure as the premier sponsor of the Olympic Games (this summer in Beijing, China). As the world moves toward using cash less and plastic more, (can't use cash as efficiently as a credit card to purchase items on line or in a foreign country), Visa will continue to be everywhere you want to be. Good play on increased personal wealth throughout the world.

What do you think about Visa, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Visa, Inc.

CAPS Rating 3/5 Stars

$60.29

-0.06 (-0.10%)

Outperform4122

Underperform267

Rate This Stock