Buy Visa Stock Before Earnings for Tariff Safety and Long-Term Upside?

Visa Inc. (V) takes a piece of the ever-growing number of payments it facilitates in the increasingly cashless world.

The credit card and payments giant’s growth is tied to consumer spending, not goods, meaning it has limited exposure directly to tariffs and supply chain disruptions.

Visa’s relative insulation from the trade war helped V stock climb 6% in 2025 while the S&P 500 has dropped over -6%. Visa has also outperformed rival Mastercard YTD and during the past several years.

Visa, which has more than tripled the S&P 500 over the past 15 years, is attempting to retake its 50-day moving average heading into its Q2 2025 earnings release after the closing bell on Tuesday, April 29.

Why this Payments Technology Stock is a Great Buy and Hold Investment

Visa is a leader in credit cards, debit cards, and digital payments, yet it doesn’t issue cards or extend credit. Instead, Visa generates revenue from transaction fees, value-added services such as fraud prevention, brand licensing, and more.

The company operates an extensive and powerful payment processing network, taking a piece of the ever-growing number of credit card payments in an increasingly cashless world. Visa remains influential in the U.S. and around the world despite fintech disruptions.

Visa is evolving in the digital payments age with innovative solutions such as contactless, scan-to-pay, tap-to-pay, secure remote commerce, and more. The company's Payment segment is broken down into Service (roughly 33% of total FY24 sales), Data Processing (35%), International Transaction (26%), and Other (6%).

The company’s constant and critical role in the economy is reflected in its consistent and impressive revenue and earnings expansion. Since Visa’s revenue comes from transaction fees and services, it won’t be liable if credit card borrowers default during a potential tariff-driven recession. Additionally, tariffs primarily affect goods, helping Visa avoid a direct hit.

Visa grew its FY24 revenue (period ended September 30) by 10%, following an average expansion of 14% over the prior three years. The payments giant is projected to grow its sales by 10% in FY25 and FY26.

Meanwhile, it is projected to boost its adjusted earnings by 13% this year and next year after 15% EPS expansion in FY24. Visa’s earnings revisions have remained relatively unchanged in the last several months despite growing economic uncertainty. The company has also topped our bottom-line estimates for five years running.  

Visa returns value to shareholders through dividends and buybacks, driven by its strong balance sheet and impressive free cash flow. The company repurchased approximately $16.7 billion worth of stock in FY24 and had $9.1 billion remaining on its buyback plan as of December 31.

Visa has climbed 60% in the past three years to outshine rival Mastercard's MA 47% climb. V stock has also jumped 24% in the last 12 months to outclimb Mastercard’s 17% and the S&P 500’s 8%.

The credit card power’s recent outperformance of the benchmark is part of a roughly 1,400% climb over the past 15 years, significantly outpacing the benchmark’s 380% gain.

On the valuation front, V trades at a 27% discount to its 10-year highs and near its median at 27.7X forward 12-month earnings. Visa is also trading 13% below Mastercard.

Buy Visa Before Earnings or Wait?

Visa is facing regulatory scrutiny from the U.S. government. However, Wall Street doesn’t seem overly concerned since V stock is up roughly 20% since the Justice Department filed a lawsuit on September 24 accusing Visa of illegally monopolizing the debit card market.

Buyers stepped up at Visa’s 200-day moving average on April 7, which was also near its post-election gap up. Strong guidance from Visa could help it break out above its 50-day, with it still trading 14% below its average Zacks price target.

Some investors and traders might want to take a risk and buy Visa before earnings. Others might want to see how the trade war and economic uncertainty are impacting its International Transaction business and beyond. 

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This article originally published on Zacks Investment Research (zacks.com).

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