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San Francisco-based Visa Inc. (V) operates a global electronic payments network and provides financial services worldwide. With a market cap of $566.6 billion, Visa is a leader in digital payments, facilitating value and information transfers among financial institutions, merchants, consumers, businesses, and governments.
Shares of this digital payment titan have underperformed the broader market over the past year. V has gained 26.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.5%. In 2024, V stock is up 19%, while the SPX is up 25.5% on a YTD basis.
Narrowing the focus, V’s underperformance looks more pronounced compared to the Financials Select Sector SPDR Fund (XLF). The exchange-traded fund has gained about 46.7% over the past year. The ETF’s 32.3% returns on a YTD basis outshine the stock’s gains over the same time frame.
Although Visa's performance over the past year has been lackluster, the company exceeded both top and bottom line estimates in its Q4 earnings report released on October 29, leading to a 2.9% jump in its stock during the next trading session.
For the current fiscal year, ending in September 2025, analysts expect V’s EPS to grow 11.3% to $11.19 on a diluted basis. The company’s earnings surprise history is robust as it beat the consensus estimate in each of the last four quarters.
Among the 37 analysts covering V stock, the consensus rating is a “Strong Buy.” That’s based on 28 “Strong Buy” ratings, three “Moderate Buys,” and six “Holds.”
This configuration is more bullish than three months ago, with 26 analysts suggesting a “Strong Buy.”
After updating its model post-earnings, on Nov. 4, Barclays PLC (BCS) increased its price target for Visa from $319 to $347 and reiterated its “Overweight” rating on the stock.
The mean price target of $323.29 represents a 4.3% premium to V’s current price levels. The Street-high price target of $347 suggests an upside potential of 12%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
