Visa (NYSE:V)

Visa is a payments kingpin that’s hovering around its pre-pandemic 2020 highs. Indeed, the stock is in a slump as the economy looks to tilt into a recession. Despite macro headwinds, Visa has continued to beat earnings estimates over the past several quarters. Even with unknowns ahead, Visa seems likely to remain a steady rock. Therefore, I am bullish.

In the latest quarter, cross-border volumes rose an impressive 31%, thanks to the ongoing recovery in travel. Even as a recession stalls the travel recovery over the near term, Visa is well-equipped to capitalize on what could be another push forward in travel demand.

While it’s hard to tell where consumer spending goes from here, Visa has the financial capacity to take advantage of opportunities in the space to add to its already sizeable moat in payments. In recent years, Visa has been quite acquisitive. As fintech valuations continue to fall, one has to think that Visa could continue or even pick up the pace of deal-making.

At writing, shares trade at 31.4 times trailing earnings. That’s on the low end of its historical range. Even if Visa stock’s breakout is a few quarters out, it’s tough to pass up on the name here.

What is the Price Target for V Stock?

Analysts have a “Strong Buy” rating on Visa, with 20 Buys, one Hold, and one Sell. The average V stock price target of $261.29 implies 20.9% upside potential.