Payment solutions provided by Visa are seamless and tailored to fit the needs of financial institutions, merchants, and customers. The dollar volume of payments rose 12% yearly to US$2.9 trillion during the third quarter. So, FintechZoom’s expert will write in this article if Visa Stock is one of the Best Stocks to Buy Now.
According to the payments giant, there were 3.9 billion cards in circulation as of March 31, 2022, up 8% from 3.6 billion a year earlier. In the third quarter of fiscal 2022, which ended June 30, 2022, Visa reported strong earnings due to increased travel worldwide.
The company’s net revenue tipped from $1 billion year-over-year to US$7.3 billion, while its net profit tipped at $3 billion year-over-year.
Reason to avoid
This year, Visa shares have fallen by 11% due to inflation, interest rate hikes, recession fears, and geopolitical uncertainty. May 12, 2022
Transactions have increased by 16% yearly, and cross-border transactions have improved by 40% yearly.
As long as there is no sharp recession, Visa should continue steadily improving payment volumes, bolstering revenue and profits.
Technical analysis
Visa has been rated Buy by most analysts. Currently, 16 buy ratings are present for the company, four hold ratings, and no sell ratings are present.
Visa Inc reported $28.1 billion in revenue with a profit margin of 50.8% for its trailing 12-month period. The company’s quarterly sales increased 18.7% over the previous year.
According to analysts, adjusted earnings for the current fiscal year will be $7.427 per share. At present, Visa Inc’s dividend yield is 0.7%.
