4-Star Stocks Poised to Pop: Visa

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, credit card giant Visa (NYS: V) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Visa's business, and see what CAPS investors are saying about the stock right now.

Visa facts

Headquarters (founded)

San Francisco (1958)

Market Cap

$82.4 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$9.8 billion

Management

Chairman/CEO Joseph Saunders

CFO Byron Pollitt

Return on Equity (average, past 3 years)

13.4%

Cash/Debt

$3.0 billion / $0

Dividend Yield

0.7%

Competitors

American Express

Discover Financial

MasterCard


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 5,052 members who have rated Visa believe that the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star joryko, nicely summed up the bull case for our community:

I keep cash on hand to get in skins when I golf and to tip when I go out to eat. Outside of that, it is all cards. Visa and MasterCard are ready to capitalize.

Tremendous Revenue Growth paired nicely with great EPS growth as well. Not the greatest entry point here, but still only a 14.5 [price-to-free cash flow] which isn't bad for a company that has grown revenues for 12 consecutive quarters now.

Respectable and growing dividend and debt free for almost a year now. Set up for a great run long into the future

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Visa may not be your top choice.

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The article 4-Star Stocks Poised to Pop: Visa originally appeared on Fool.com.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of Visa and creating a write covered strangle position in American Express. The Fool owns shares of Visa. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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