Visa Inc. (V) Buy or Sell Stock Guide

January 15, 2020

Are you looking for the analysis of Visa Inc. (V) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 6 reasons to buy and 7 reasons to sell V stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about V stock:

  • Is V a buy or a sell?
  • Should I sell or hold V stock today?
  • Is V a good buy / investment?
  • What are V analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy V stock:

1. Visa is king of the hill in the digital payment market and will not be easily toppled.

2. The ability to deal with hundreds of legal and regulatory frameworks around the world is a significant barrier to entry.

3. Visa has an established network and brand and has only to adopt new technologies for its own purposes in order to fend off competition.

4. V quarterly revenue growth was 12.90%, higher than the industry and sector average revenue growth (4.18% and 3.46%, respectively). See V revenue growth chart.

5. V profitability is improving. The YoY profit margin change was 13.49 percentage points. See V profitability chart.

6. V average analyst rating is Buy. See V analyst rating chart.

Now that you understand the bull case, let’s look at the reasons to sell V stock (i.e., the bear case):

1. The global financial system is becoming increasingly regulated, and the biggest players will be the first victims.

2. Visa's already large market share, and its relative dependence on U.S. spending and debit cards, may place it at a growth disadvantage.

3. The increasing use of mobile technologies will usher in a new payment paradigm at some point.

4. V stock price ($196.05) is at the 52-week high. Perhaps now is a good time to sell? See V price chart.

5. V Price/Book ratio is 14.49, and it’s high compared to its industry peers’ P/B ratios. See V forward Price/Book ratio chart.

6. V Price/Sales ratio is 18.96, and it’s high compared to its industry peers’ P/S ratios. See V forward Price/Sales ratio chart.

7. V short interest (days to cover the shorts) ratio is 4.09. The stock garners more short interest than the average industry, sector or S&P 500 stock. See V short interest ratio chart.

Now let's look at the key statistics for V:

Metrics V
Price $205.04
Average Price Target / Upside $206.27 / 0.60%
Average Analyst Rating Buy
Forward Dividend Yield 0.61%
Industry Credit Services
Sector Financial Services
Number of Employees 17,000
Market Cap $435.69B
Forward P/E Ratio 27.12
Price/Book Ratio 18.96
Revenue (TTM) $22.98B
YoY Quarterly Revenue Growth 12.90%
Profit Margin 52.57%

What are your thoughts on V?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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