AXP - Visa Is Expensive But Still A Buy
2024-03-11 06:40:44 ET
Summary
- Visa's revenues have increased by 171% over the last decade, with sales expected to continue growing at a rate of ~10% annually.
- Visa has significant growth opportunities in emerging markets, particularly in Latin America, and is expanding its value-added services to increase volumes and net flows.
- Despite its high valuation, the sales and EPS growth together with future opportunities make it a BUY.
Introduction
I recently wrote about American Express ( AXP ) as an exciting investment option in financial services. One of the comments I got asked me about the difference between American Express and Visa ( V ). Visa is focused on the infrastructure of transactions and doesn't offer credit like American Express. However, some parts of their business still overlap, such as payments. Therefore, they are competing in some competitive arenas....
Visa Is Expensive, But Still A Buy