Can the visa shares today prepare for life?

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  • The favorable Tailwinds supports the growth of Visa Double Docit, which is scheduled to continue in the coming years.

  • The huge ecosystem of the company, which consists of cards and merchants, creates a strong effect on the network.

  • The shares are not traded by assessing a deal, so investors must put realistic expectations.

  • 10 shares we love better than the visa ›

We all want to find this investment that can make us huge returns. in the past, Visa (Nyse: v) Do that completely.

The world has produced dominant payments in the world, a total return of 2880 % since its initial general offer (IPO) in 2008. Financial stocks At that time, you will stare at $ 298,000 in your wallet today.

Arrows are now trading in a standard area. The maximum of the company’s market is $ 721 billion. But if you bought today, can Visa prepare you for life?

Visa discount card used in a restaurant.
Photo source: Getty Images.

It may be evident, but finding work has tremendous growth potential, especially in the long run, can lead to strong investment gains. This is not a shock. To be clear, the visa is no longer included in this category anymore.

But this does not mean that it has been developed. In fact, visas record a solid growth, which is driven by favorable background winds.

The first growth driver is the ongoing war of cash, as consumers and companies adopt the methodologies of digital transactions. While developed economies, such as the United States and Canada, have a lesser opportunity these days, emerging markets in Asia and Africa still have meaningful capabilities.

Constant economic growth, which nourishes spending, also benefits from the visa. In the past ten years, basic personal consumption expenditures in the United States have increased by 101 %. Assuming that the global economy is still expanding and is much larger than now, it is safe to say that the visa will gain.

According to unanimity analyst estimates, the company’s revenues and profits for one share will be expected to climb at an annual compound rate of 10.2 % and 12.6 %, respectively, between the fiscal year 2024 and financial 2027. I think it is victory that this type of speed expects in the following years.

Besides the solid growth, there is another reason for the reason that the Visa in the list of monitoring each investor is that the company has an economic trench. He built a major sustainable competitive advantage that supports long -term success.

The visa has incredible Network effect. There are 4.8 billion of its cards active all over the world. And 150 million merchants around the world accept these cards. Card holders find a huge value because of the extent of acceptance of the visa on a large scale. The same applies to merchants, as delivery to the visa network means that they do not have to reject customers and lose potential sales.



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