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Visa Inc. (V), valued at a market cap of $651.4 billion, is a global leader in digital payments, facilitating secure and seamless transactions across more than 200 countries and territories. Headquartered in San Francisco, California, the company generates revenue primarily from transaction processing fees, benefiting from the ongoing shift toward digital and cashless payments.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and V definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the credit services industry. Its resilient business model, which relies on transaction processing fees rather than credit risk, provides stability across economic cycles. As digital payments continue to expand, Visa benefits from rising e-commerce adoption, contactless transactions, and fintech collaborations.
Riding the wave of strong demand, the payment technology titan hit a new 52-week high of $360.32 in its latest trading session. The stock has been on a winning streak, surging 13% in the past three months while the Nasdaq Composite ($NASX) tumbled, dropping 2.7%.
Its longer-term gains are even more striking, soaring 31.4% over six months and 25.6% over the past year, leaving NASX’s modest 4.5% and 15.7% returns trailing behind.
To confirm the bullish trend, Visa has traded above its 200-day moving average since late September and has hovered over its 50-day moving average since mid-January.
Visa has outperformed the industry and peers over the past year, driven by its resilient business model, surging digital payments, and strong financial performance. Its dominant network effect, benefiting from widespread global acceptance, has fueled transaction growth, while the recovery in cross-border payments has boosted high-margin revenue.
On Jan. 30, Visa shares surged 2.1% after delivering impressive fiscal first-quarter results. Net revenue climbed 12% year-over-year to $9.6 billion, topping the $9.3 billion consensus estimate, while non-GAAP net income reached $2.75 per share, exceeding market expectations. The strong performance was fueled by a 9% jump in payment volume and a 16% surge in cross-border transactions, highlighting robust consumer spending during the holiday season. Adding to investor confidence, Visa's board approved a 13% hike in its quarterly dividend to $0.59 per share, reinforcing the company's solid growth trajectory.
In the fierce battle of credit services, Mastercard Incorporated (MA) has lagged behind Visa, climbing 18.9% over the past six months and 19% over the past year.
Visa has Wall Street’s strong backing, with a consensus “Strong Buy” rating from the 36 analysts covering it. The stock’s mean price target of $382.32 suggests a potential upside of 7.5% from current price levels.
