Should You Invest $1,000 in Visa (V) Before the End of 2025?

In its fiscal 2025 (ended Sept. 30), Visa (NYSE: V) 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.

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.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.