Why Visa Is Poised to Outperform

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 has earned a respected four-star ranking.

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

Visa facts

Headquarters (founded)

San Francisco (1958)

Market Cap

$98.1 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$10.4 billion

Management

CEO Charles Scharf (since October 2012)

CFO Byron Pollitt, Jr. (since September 2007)

Return on Equity (average, past 3 years)

11.5%

Cash/Debt

$2.8 billion / $0

Dividend Yield

0.9%

Competitors

American Express

Discover Financial Services

Mastercard


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

On CAPS, 95% of the 5,096 members who have rated Visa believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, adamlevy, succinctly summed up the Visa bull case for our community:

Industry leading company with its logo on over 60% of credit cards worldwide . The company will likely increase market share as new credit cards are more often issued on the Visa network. The company makes money on transactions and therefore doesn't have to deal with loans and the like, freeing up its balance sheet from liabilities. This company will continue to lead into the electronic payment revolution that is upon us.

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.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Visa Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of MasterCard. Motley Fool newsletter services recommend American Express Company and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement