The digital payments market is poised for outstanding growth, fueled by efficient and convenient payment methods for consumers, led by Visa (V). Visa’s Q3 was a very productive one, with gains all around in revenue and production. The credit card processor reported $2.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.58 by $0.13. The company had a return on equity of 51.94% and a net margin of 54.72%. It also boasted revenue of $9.62 billion during the quarter, outperforming analyst estimates of $9.49 billion. However, those gains fail in comparison to the forecasted results expected heading into Q4 results and the start of 2025, according to multiple analysts.
The global digital payments market is forecasted to grow to $36.75 trillion by 2029, at a CAGR of 15.7%. As the world embraces digital finance, this explosive growth presents massive opportunities for Visa Inc. If Visa can take advantage of these opportunities, investors who jump in now could see immense stock gains in the next few years. With V stock on the rise, now may be the best time to invest, as it’s one of the few must-haves in an investment portfolio.
V is at the forefront of the digital payment revolution. From VisaNet, its transaction processing network, to offering credit, debit, prepaid cards, and Visa Direct, the company has become a payment powerhouse. V’s innovative solutions and strategic partnerships have solidified its dominant position in the market. Additionally, V’s impressive growth over the past year has been a marvel, with stock rising 22.1% over that span.
Visa Stock a Must-Have Before 2025
Visa’s adaptable business model thrives across diverse demographics and regions, catering to preferences influenced by age, income, and geography. The company is well-positioned to capitalize on emerging digital trends in 2025. This includes the growing e-commerce market, for which its payment methods are a staple.
On November 12, the company expanded its Flexible Credential program to the United States with Affirm and to the United Arab Emirates with Liv. The innovation allows customers to pay using multiple account funding sources with a single card. The move was a notable one, causing investor hype to rise and pump the stock’s price. Additionally, on October 29, V partnered with Coinbase, a leading platform for buying, selling, and managing crypto. Through the integration of Visa Direct, V now facilitates real-time account funding for crypto transactions. Furthermore, both moves are expected to significantly boost V’s market share beyond 2025, solidifying its dominance in the digital payments landscape.
With these latest innovations and Visa’s current majority hold over the payment service market, there’s no denying that if you are a holder of V stock, you can expect even higher gains come 2025. If you aren’t in now, it may not be too late. If you’re looking for a surefire stock entering the new year, analysts suggest V may be a top option.
Investment analysts at TD Cowen recently revised their predictions for Visa stock, according to a Benzinga report. Indeed, the analysts increased their forecast for V from $318.00 to $325.00. Other equities research analysts have also recently issued research reports about the stock. StockNews.com upgraded shares of Visa from a “hold” rating to a “buy” rating in a research note on August 9th. Robert W. Baird lifted their target price on Visa shares from $330.00 to $340.00. Those analysts also gave Visa stock an “outperform” rating.
