V - Visa Is Getting Close To A Downgrade
2024-03-31 23:57:30 ET
Summary
- Visa's stock has risen by 14% since it was last rated a 'hold'.
- The company's fundamentals show continued growth, with an increase in revenue, transactions, and net profits, but this doesn't make it a prime prospect.
- If anything, V stock is becoming pricey and there is a risk of units becoming overvalued, leading to a more cautious stance.
In November of last year, I decided to dig into one of the largest publicly traded companies on the planet. That happens to be payment processing giant Visa ( V ). With a market capitalization of $581.2 billion as of this writing, the company dwarfs almost any other firm out there. Of course, you have the big tech companies that surpass it. You also have a couple of other firms like Berkshire Hathaway ( BRK.A ) ( BRK.B ) and Eli Lilly ( LLY ). But beyond that, you don't have anything else. Back when I last wrote about the firm , it was not as large as it is today. Since then, the stock has risen by 14%. Considering that I rated it a 'hold', some investors might view my call as being overly conservative. But considering that I define a 'hold' as a company that should see upside or downside that more or less matches the broader market, and considering that the S&P 500 is up 14.7% over the same window of time, I call this a win....
Visa Is Getting Close To A Downgrade