Is Visa Stock Still a Buy After Gaining 14% This Year?
The stock has jumped 12% in the last two weeks.
Visa (V) stock has surged 14% so far this year, reaching an all-time high of $359 per share in September and climbing further to $401 by the end of the two-week period. The majority of this growth has occurred in the past two weeks, driven by Visa's approval to establish a bankcard clearing institution in China through the People's Bank of China. This significant expansion opens up one of the world's largest markets for Visa.
Another catalyst for the stock's recent gains is the commercial deployment of Visa Direct, its stablecoin platform, which officially moved from the pilot stage to commercial use on October 15. This development marks a crucial step in bringing stablecoin-enabled money movement into commercial operations, providing businesses with a new tool for transactions.
Following these positive developments, Visa stock received price target upgrades from Baird and BMO Capital, possibly adding to its appeal. The company is set to report its fiscal fourth-quarter earnings on October 27, during which it typically raises its dividend. Historically, Visa has raised its dividend annually since 2009, with substantial increases in recent years.
For example, last year, the dividend was raised by 14% to $0.67 per share, and the year before that, it was increased by 13%. Anticipating a strong year, Visa expects revenue growth at the high end of low double digits for Q4 and overall low-to-mid teen revenue growth for the fiscal year, alongside EPS growth in the low-to-mid teens.
With a forward P/E of 24, Visa appears to be a durable investment across markets, making it an attractive long-term buy at the current valuation.
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