In its fiscal 2025 (ended Sept. 30), Visa (V 1.52%) showed that its business continues to operate from a position of strength. Revenue and adjusted net income both posted double-digit percentage increases. But the financial stock's price has only climbed 3.8% this year (as of Nov. 18).
That unusual, underwhelming stock performance suggests there may be an opportunity for investors to add a wonderful business to their portfolios.
Should you buy $1,000 worth of Visa shares before the end of 2025?
Image source: Visa.
Visa is a high-quality company
As mentioned, Visa has proven that it can register solid growth despite ongoing economic uncertainty. The business benefits from rising adoption of electronic payments, a secular trend that still has lots of room to run.
Visa's profits are exceptional. Last fiscal year, the company reported an unbelievable net margin of 50%.
Investors also can't overlook perhaps the most compelling trait: the presence of a powerful network effect. This protects the company's competitive position.
NYSE: V
Key Data Points
What about the valuation?
The stock deserves a place on investors' watch lists. But it doesn't look like a smart buying opportunity at the moment. That's because shares trade at a price-to-earnings ratio of 31.9. While the valuation has come down in recent months, this setup doesn't bode well for the stock's ability to beat the market over the long run.
