Visa is a technology company principally focused on payments. It accounts for more than a quarter of the world market.
Share capital consists of 3 types of securities. Class A stocks are the most common ones. They are traded on the New York Stock Exchange (NYSE) under the "V" ticker.
The company is included in the SP500 and Dow Jones indices. More than 75% of its stock is owned by institutional investors.
Visa is a moderately volatile asset. The high share of index funds among shareholders partially stabilizes quotations. Besides, they are supported by constant business development.
Visa is classified as a growth company. It is proper for long-term capital appreciation strategies. Its price moves slightly slower than the market on average. Therefore, this security is hardly ever used for intraday trading and other short-term approaches.
The company is not among the dividend aristocrats. Visa isn't the best bet for dividend strategies. It makes quarterly distributions to shareholders. But their annual yield is less than 1%.
Visa's stock price is falling today. Bears prevail on the market. Negative moods are caused primarily by external circumstances. They include macroeconomic factors and expectations of deterioration of the situation on the stock exchange.
Price for 12/03/2024 - 316.65 USD
Least possible price, $ |
Best possible price, $ |
|
Price at the end of 2024 |
$277 |
$375 |
Price for next year 2025 |
$441.5 |
$597 |
Long-term price 2025-2030 |
$410 |
$825 |
For the coming month the forecast on Visa stocks is bullish. The target price range for mid-February is between $305 and $315. It is equivalent to 11-14% of the current value.
Based on data from the Market Screener platform, Wedbush Securities and Goldman Sachs expect Visa to grow. BeatMarket specialists also consider the probability of maintaining the bullish trend to be extremely high.
The quotations reached the historical maximum in December 2023. The price chart approached the upper line of Bollinger Bands. But many indicators give buy signals on all time frames.
According to analysts, the price target for the stock at the beginning of 2024 is $277.50. According to our prediction, a strong resistance level is the $265 threshold. If the external background is unfavorable, the quotes may be unable to pass it. In case the uptrend breaks, the support levels will be as follows:
$251,33;
$227,58;
$211,50.
Quotes are above the 50 and 200 daily moving averages. But there is no signal for trend reversal yet. RSI and MACD oscillators do not indicate the overbought asset.
The information provided is not investment advice. The forecast is based on the data relevant at the time of its compilation. It is posted solely for information purposes. The editorial staff does not bear any responsibility for the investment decisions of the readers.
Since 2020 Visa has demonstrated a stable increase in revenue and net profit. Over 3 years, the growth of the first of the above-mentioned indicators is about 50%. The latter - almost 70%. Financial data from the most recent reports of the company are given below in the Key Financial Indicators section.
Visa may not seem attractive enough on the most popular multiples. Neil Patel from The Motley Fool notes that the company's P/E multiple is overstated. As of mid-January 2024, this ratio is actually higher than the industry average. The difference is about 50%.
But Visa's PEG Ratio is only 1.64. That is also considered above a fair valuation. Still, this value is lower than, for example, those of Apple or Microsoft.
For information on other key ratios, please refer to the table.
Visa stock is considered stable and low-volatility. The company has been demonstrating fast recovery after all crises of the last 5 years. This speaks about high potential and investors' faith in the future of the business.
Most analysts assume that in the next 5 years the company's quotations will grow steadily. Small corrections will be explained by the external background and will be quickly repaid by the market.
In the coming months, companies promise to rise above the $300 bar. For example, Trevor Williams from Jefferies calls the target price the level of $305. And experts of Goldman Sachs - $318.
By the end of the coming five year period, Visa is expected to join the ranks of issuers with capitalization of more than $1 trillion. Even moderate predictions promise growth of quotations by 1.5 times and more. Very few pessimists believe that the company's development will stagnate. Yet they do not give bearish forecasts, but promise only extremely slow growth.
According to the consensus forecast from several dozen analysts, the decline in Visa's value is possible only in the next year. All longer-term predictions are somewhat bullish.
The reasons for this are the company's steadily improving fundamentals. It is constantly expanding its business. Therefore, it is expected to keep growing revenue, net income and EPS.
According to forecasts, in 5 years the value of Visa stock will reach the range of $315-$1599.5. BeatMarket experts stick to the midpoint position. We believe that a reasonable growth potential estimate for today is the range from $400 to $600.
The company's strengths that will contribute to the growth of quotations:
good diversification by regions of presence;
high market share;
increasing product demand;
expansion of activities, readiness to introduce the latest technologies.
Still, risks of the company should be kept in mind as well. First of all, these are possible changes in the regulation of the payment processing market. The second is the spread of alternative payment methods. However, the company is trying to turn the latter to its advantage. It is actively expanding its presence in the world of cryptocurrency.
The company has successfully started 2024. In January, its quotations managed to renew the historical maximum. The forecasts of most leading experts are also optimistic. But there are also bearish predictions.
According to the data published by NASDAQ, the expected target price is:
$265 in the negative scenario;
$303.68 is the average;
$326 in bullish outlook.
According to the Wall Street Zen platform, the minimum forecast price for Visa at the end of 2024 is $252. At that, the optimistic scenario coincides with the one mentioned above - $326.
The stock has an analyst rating of Strong Buy at the beginning of February 2024. The main bulls' argument is expectation of further growth of the stock market on the background of rates decreasing. Good financial reports of the company also support the quotations.
Regular price, $ |
Least possible price, $ |
Best possible price, $ |
|
April |
303.014 |
257.5619 |
348.4661 |
May |
298.535 |
253.75475 |
343.31525 |
June |
304.260 |
258.621 |
349.899 |
July |
316.128 |
268.7088 |
363.5472 |
August |
312.823 |
265.89955 |
359.74645 |
September |
301.590 |
256.3515 |
346.8285 |
October |
310.667 |
264.06695 |
357.26705 |
November |
315.840 |
268.464 |
363.216 |
December |
326.355 |
277.40175 |
375.30825 |
Forecasts for Visa in 2025 are bullish. Analysts point out that the company has many growth drivers. Among them are the increasing demand for its services, and the expansion of its activities. A decline in interest rates will also be positive.
Various popular services offer the following forecasts for the end of 2025:
$ 319,49 - Coincodex;
$435-589 - Gov Capital;
$466-$548 - 30rates.
Such unanimity in bullish forecasts is due to fundamental factors. All the forecasts promise stable improvement of the company's financial indicators.
BeatMarket analysts also share the bullish outlook. But we do not expect a quick move above the $500 mark. Our detailed forecast is presented in the table below.
Regular price, $ |
Least possible price, $ |
Best possible price, $ |
|
January |
344.274 |
292.6329 |
395.9151 |
February |
344.294 |
292.6499 |
395.9381 |
March |
476.316 |
404.8686 |
547.7634 |
April |
482.804 |
410.3834 |
555.2246 |
May |
478.587 |
406.79895 |
550.37505 |
June |
483.775 |
411.20875 |
556.34125 |
July |
495.778 |
421.4113 |
570.1447 |
August |
496.905 |
422.36925 |
571.44075 |
September |
483.709 |
411.15265 |
556.26535 |
October |
500.063 |
425.05355 |
575.07245 |
November |
512.943 |
436.00155 |
589.88445 |
December |
519.466 |
441.5461 |
597.3859 |
At the end of 2026, Visa's revenue will increase by 32% to $44bn. EPS growth will reach 46%. Such a forecast was published by Wall Street Zen platform. No doubt, these financial results will favorably influence quotations.
Traditionally, analysts differ in their predictions. Below are the target prices, which are promised by various data sources:
Wallet Investor are rather pessimistic, their forecast is $293.82-$295.58;
Stock Scan has a moderate position and promises a price in the range of $354.5-$446;
Gov Capital is optimistic and expects the price to rise to $454-$614.
BeatMarket experts share a moderate viewpoint. We take a bullish outlook. But we do not expect the quotations to fix above the $500 mark. For more details see the table below.
Regular price, $ |
Least possible price, $ |
Best possible price, $ |
|
January |
540.695 |
459.59075 |
621.79925 |
February |
543.597 |
462.05745 |
625.13655 |
March |
717.117 |
609.54945 |
824.68455 |
April |
728.320 |
619.072 |
837.568 |
May |
723.721 |
615.16285 |
832.27915 |
June |
736.081 |
625.66885 |
846.49315 |
July |
747.142 |
635.0707 |
859.2133 |
August |
752.045 |
639.23825 |
864.85175 |
September |
741.637 |
630.39145 |
852.88255 |
October |
754.196 |
641.0666 |
867.3254 |
November |
769.596 |
654.1566 |
885.0354 |
December |
780.149 |
663.12665 |
897.17135 |
Stock Analysis service assumes that in 2027 Visa's revenue will amount to $48.62bn. This is an increase of more than 1.5 times relative to last year's level. According to the source, EPS will double.
Many experts give a bullish forecast on Visa based on such expectations. Despite this, there are analysts who do not believe in the growth of capitalisation. The most interesting predictions on V stock prices for 2027:
$305 - by Wallet Investor;
$392-$442 - by Stock Scan;
$933-$1262 - by Gov Capital.
Despite the company's success, Wallet Investor has lowered its target price. Earlier it promised a level of about $342 by March 2027. BeatMarket analysts do not share such pessimism.
Regular price, $ |
Least possible price, $ |
Best possible price, $ |
|
January |
800.940 |
680.799 |
921.081 |
February |
807.721 |
686.56285 |
928.87915 |
March |
1038.095 |
882.38075 |
1193.80925 |
April |
1050.154 |
892.6309 |
1207.6771 |
May |
1048.291 |
891.04735 |
1205.53465 |
June |
1058.982 |
900.1347 |
1217.8293 |
July |
1073.572 |
912.5362 |
1234.6078 |
August |
1077.019 |
915.46615 |
1238.57185 |
September |
1068.359 |
908.10515 |
1228.61285 |
October |
1083.906 |
921.3201 |
1246.4919 |
November |
1097.570 |
932.9345 |
1262.2055 |
December |
1109.919 |
943.43115 |
1276.40685 |
Rich Duprey, a member of InvestorPlace, considers that there are reasons to believe in Visa's growth. In his opinion, the company's capitalization could exceed $1 trillion by 2028. For that to happen, the quotes would need to nearly double.
Here is a brief overview of forecasts from other experts:
$315 - by the extremely pessimistic Wallet Investor;
$496 by Coincodex;
to $1599.5 by the optimistic Gov Capital.
BeatMarket analysts agree with the high potential of Visa. The company's business structure allows us to believe that its capitalisation will cross the $1 trillion threshold.
Regular price, $ |
Least possible price, $ |
Best possible price, $ |
|
January |
1132.461 |
962.59185 |
1302.33015 |
February |
1135.472 |
965.1512 |
1305.7928 |
March |
1320.001 1 |
122.00085 |
1518.00115 |
April |
1332.712 |
1132.8052 |
1532.6188 |
May |
1331.984 |
1132.1864 |
1531.7816 |
June |
1344.123 |
1142.50455 |
1545.74145 |
July |
1359.335 |
1155.43475 |
1563.23525 |
August |
1365.440 |
1160.624 |
1570.256 |
September |
1357.546 |
1153.9141 |
1561.1779 |
October |
1375.043 |
1168.78655 |
1581.29945 |
November |
1391.838 |
1183.0623 |
1600.6137 |
December |
1404.622 |
1193.9287 |
1615.3153 |
Analysts give bullish stock price forecasts in the long term. This is due to strong fundamental factors:
Business growth potential at the expense of developing countries.
Reducing the share of cash payments worldwide in general. Visa is one of the main beneficiaries of this process.
Steady expansion of the company's sphere of activity, investments in technological innovations.
Improvement of financial indicators from year to year.
Low debt load.
Another important feature is the unique algorithm of cooperation with competitors. For example, PayPal is also a partner. Visa receives income from co-operation with this company.
The main business risks are clashes with regulators and anti-monopoly legislation. An additional factor is competition with local payment systems in major countries.
Visa's forecast for the next decade is optimistic. Analysts promise stable growth of the average annual stock price. There are opinions that in 2026 quotations will be fixed above $375. And in 2028 - above $450.
According to experts, the reason for the drawdowns will turn out to be only a technical correction. They are expected to be quickly redeemed by long-term investors.
Such outlooks are based on 2 factors:
historical data extrapolation of the company's quotations;
Visa's positive revenue and earnings forecast for the coming years.
Such judgements cannot serve as a guarantee of future profitability. They also do not take into account the possibility of "black swans".
It is expected that 2024-2030 will be a period when cash payments will be actively reduced. This will have a positive impact on the company's income.
The Motley Fool analysts expect Visa's capitalisation to exceed $1 trillion in 2030. This is equivalent to a 2-fold increase in quotations over 6 years. That is, the forecasted stock price is about $500-$510. At the time of writing, the company's capitalisation is $542.91bn. This is the 11th position in the world ranking.
Experts agree that Visa's stock will be worth much more by the end of the decade than it is today. Target prices can be found in various reports:
the minimum level is $410;
the average analysts' V stock price forecast is $540-$560;
the most optimistic scenario is $825.
It is important to note that many analysts are gradually improving their long-term outlooks. For example, back in early 2023, no one expected to see quotations above $700 by 2030.
The price forecast for the next decade is also bullish. Companies promise rapid growth for the period 2030-2040. The long-term nature makes the outlooks even more variable. In the view of different analysts, the stock will be priced as follows:
the minimum threshold is $600;
expected average price - $1000-$1100;
the most optimistic scenario - $1900.
Even the most minimalistic variant predicts fast growth of quotations. If it is realized, the stock will outperform the average annual growth rate of the SP500 over a long period.
Experts suppose 2 key drivers of the company's strengthening in the next decade. These are expansion of the services provided and almost complete disappearance of cash payments.
Visa stock price forecasts for 2050 are also bullish. But they are based solely on faith in the company at such horizons. It is difficult to state any fundamental factors or reliable estimation.
As predicted, long-term Visa looks promising for investment. But it is not the leader of analysts' rating by the rate of expected growth.
Experts show less optimism than when making forecasts for 2040. It is caused by understanding that cardinal changes in the world are inevitable on such a time horizon.
The following indicators are expected from Visa by the end of 2050:
minimum, $1100;
average - $1200-$1250;
maximum, $1700.
Even in a minimalist scenario, the stock is predicted to rise 420% relative to its current price.
The Stockscan platform analysts believe that the price of Visa at the end of 2050 will be at least $1223. The most optimistic forecasts are made by Jitendra Krishnan, a representative of the kndos.com information resource.
Visa Inc. operates in more than 200 countries. It provides services to individual consumers, small and large businesses, and governments.
At the moment, processing information on payments is the company's main source of income. The development strategy includes not only the expansion of the area of presence. It includes the creation of new value-added services.
The company is a beneficiary of increased business activity and the proliferation of digital services. That said, some analyst recommendations have labeled it a defensive story on par with telecoms.
General information on V. stocks:
The issuer pays dividends. But the yield is less than 1%, i.e. below the market average.
For the last 1- months earnings per share (EPS) made $8.3.
The P/E multiple fluctuates around 30-35. This indicator is noticeably lower than in 2021, but above the industry average.
In 2015, there was a split with the ratio of 4:1. Taking it into account, quotations have grown about 20 times since the IPO in 2008.
Volatility corresponds to the market average. The beta coefficient is equal to approximately one.
In 2023, Visa confirmed its ability to create significant financial flows. But experts’ forecasts promise a slower pace of development in the future.
Visa Price History Chart
The company earns money by providing intermediary services. It is a bridge between the bank and the merchant accepting payment from the customer. Visa does not charge a percentage of each payment directly. But its main source of revenue is data processing. That is, the more transactions, the higher V earnings. The more a business earns, the more its stocks are being estimated. Therefore, Visa quotations depend on the factors affecting the demand for cashless payments.
Stock prices are not only influenced by the success of a company. Investors' willingness to buy and hold securities matters. When interest rates are high, bonds are more attractive. This factor puts pressure on the price.
Business performance is the key factor by which investors evaluate a company. Visa is constantly increasing the territory of its presence and expanding its services. In addition, non-cash payments are becoming more and more in demand. All this is reflected in the company's financial reports and leads to revenue growth.
On the horizon of 15-20 years the Visa stock price prediction is positive. Analysts expect quotations to grow 8-9 times. Such a scenario looks completely realistic. But only provided there are no significant shocks in the market. At the same time, there are assets that are promised to increase in value tenfold.
Technical analysis is used for price prediction for the next days and months. The key tools are RSI, moving averages, Bollinger Bands, etc. Using these indicators, as well as pivot points, one can predict the trend change. This forms the basis for the decision to buy or sell.
Experts recommend investing in the company's securities. This is due to favorable fundamental factors, strong financial forecast. At the same time, insiders and hedge funds are reducing the volume of their positions. It should be taken into account that quotations are near historical highs. Markets always return to the average level. In time, a correction will become inevitable.
Exchange analysts consider it appropriate. The latest long-term forecasts for the company's stocks are inferior to some other assets. But Visa has demonstrated its stability and ability to quickly restore quotations. Features of the business allow not to worry about inflation and some other unfavorable factors.
On the horizon of decades analysts promise growth of V price. And the bulk of it is expected in the coming years. The company's business looks promising from the point of view of expansion. It is also a beneficiary of the current trends in the economy. It is primarily benefiting from the reduction in cash payments.
Vanguard Group Inc. owns the most shares of Visa. This investment fund management company controls 8.94% of the total number of shares. The second and third places are occupied by Blackrock Inc. and State Street Corporation. They own 7.99% and 4.64%, respectively.
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