Why Visa Is Prime Play On Global Expansion
Investors looking to fortify their portfolios with select financial stocks have varied choices, from major commercial banks to investment and securities institutions. But with the market continuing to power upward, the ideal pick would be a stock that continues to ramp up even after repeatedly hitting record highs. One such financial growth juggernaut is Visa, the world’s largest retail electronic payment network and a leading credit-card brand providing services globally to consumers, businesses, and governments. Visa’s stock, which has exceeded many analysts’ price targets this year, continues to climb to record highs, closed on May 2, 2017, at an all-time high of $92.54. Currently trading slightly below that price, the stock is expected to accelerate to further new highs. “We remain confident in Visa’s growth outlook,” says Tien-tsin Huang, equity analyst at J.P. Morgan Securities, who has raised his price target for Visa to $100 a share from $95, as he increased his 2017 and 2018 earnings estimates. With its global reach, Visa provides financial institutions with a broad range of platforms for costumer credit, debt, prepaid, and commercial payments. The company derives revenues primarily from card service fees, data processing charges, and international transaction payments. Visa continues to expand its core payments business in new global markets and broaden its processing capabilities and value-added services for payments and related opportunities. Read more at Forbes.