Strong Quarterly Earnings Boosted Visa (V)

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Large Cap Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market experienced a modest decline in Q1 2025, with the S&P 500 Index falling 4.27%, while bonds showed stability with the Bloomberg U.S. Aggregate Bond Index rising 2.78%. In the first quarter, Aristotle Atlantic’s Large Cap Growth Strategy delivered -9.55% gross of fees (-9.68% net of fees), outperforming the Russell 1000 Growth Index’s -9.97% return. Security selection led the portfolio to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Aristotle Atlantic Large Cap Growth Strategy highlighted stocks such as Visa Inc. (NYSE:V). Headquartered in San Francisco, California, Visa Inc. (NYSE:V) is a payment technology company. The one-month return of Visa Inc. (NYSE:V) was -4.43%, and its shares gained 21.52% of their value over the last 52 weeks. On April 23, 2025, Visa Inc. (NYSE:V) stock closed at $334.37 per share with a market capitalization of $645.003 billion.

Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Visa Inc. (NYSE:V) in its Q1 2025 investor letter:

"Visa Inc. (NYSE:V) was a relative contributor in the first quarter, driven by strong fourth quarter earnings supported by robust holiday season consumer spending and sustained growth in payment volumes, trends that continued into January. The company also indicated optimism regarding potential benefits from a more favorable regulatory environment under the new presidential administration. Additionally, two of the company’s fastest-growing segments, New Flows and Value-Added Services, continued to achieve above-average growth, capitalizing on substantial and expanding market opportunities."

Visa Inc. (NYSE:V) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 181 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the fourth quarter which was 165 in the previous quarter. Visa Inc. (NYSE:V) had a strong start to fiscal year 2025 with $9.5 billion in net revenue, up 10% year-over-year, and a 14% increase in EPS. While we acknowledge the potential of Visa Inc. (NYSE:V) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Visa Inc. (NYSE:V) and shared the list of best stocks to buy and hold for 20 years. Visa Inc. (NYSE:V) was a top contributor to Wedgewood Partners' performance during Q1 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.