Visa (V): 3 Reasons We Love This Stock

Since July 2025, Visa has been in a holding pattern, floating around $357.79. The stock also fell short of the S&P 500’s 10.8% gain during that period.

Given the weaker price action, is now a good time to buy V? Or should investors expect a bumpy road ahead? Find out in our full research report, it’s free for active Edge members.

Why Are We Positive On Visa?

Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE:V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.

1. Long-Term Revenue Growth Shows Strong Momentum

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

Luckily, Visa’s revenue grew at a solid 12.9% compounded annual growth rate over the last five years. Its growth surpassed the average financials company and shows its offerings resonate with customers.

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Visa’s EPS grew at a remarkable 17.9% compounded annual growth rate over the last five years, higher than its 12.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

3. Stellar ROE Showcases Lucrative Growth Opportunities

Return on equity (ROE) measures how effectively banks generate profit from each dollar of shareholder equity - a critical funding source. High-ROE institutions typically compound shareholder wealth faster over time through retained earnings, share repurchases, and dividend payments.

Over the last five years, Visa has averaged an ROE of 44.4%, exceptional for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows Visa has a strong competitive moat.

Final Judgment

These are just a few reasons Visa is a high-quality business worth owning. With its shares lagging the market recently, the stock trades at 27.7× forward P/E (or $357.79 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More Than Visa

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