Visa (NYSE: V) Stock Is a Discounted COVID-19 Recovery Play

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Visa Inc ($NYSE:V). is a financial services corporation that facilitates electronic funds transfers throughout the world.

However, the company has since rebounded and is now trading at a more attractive price. The below chart predicts the value at risk and potential return of holding Visa stock. As shown by the blue intrinsic value region, Visa has not traded at such a discount since early spring of 2020. It is important to note that COVID was taking a serious toll on revenue, earnings, and margins at that time. Given Visa’s strong rebound since then, and its current discounted price, now may be an ideal time to consider investing in the company.

Earnings

In the latest earning report of FY2022 Q4 as of September 30, Visa Inc. earned 29.3B USD in total revenue, earned 15.0B USD in net income. Compared to the previous year, there was a 21.6% increase in total revenue and a 22.0% increase in net income. Visa Inc.’s total revenue reached from 21.8B USD to 29.3B USD in the last 3 years. The company is expected to continue to grow as the world recovers from the pandemic.

Share Price

At the time of writing, media sentiment is mostly negative. On Wednesday, Visa Inc stock opened at $200.7 and closed at $193.9, down by 3.9% from the prior closing price of $201.8. The company has a strong financial position with a solid balance sheet and plenty of cash on hand.

In addition, Visa is a global payments leader with a vast network of merchants and consumers. The current sell-off presents a buying opportunity for long-term investors. Visa is well-positioned to benefit from the eventual recovery in global economic activity.

VI Analysis

However, it is weak in terms of asset. The company is classified as a ‘gorilla’, meaning that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors who are interested in this company may be looking for stability and high returns. They may also be interested in the company’s strong competitive advantage.

VI Peers

In the world of electronic payments, there are four major players: Visa Inc, Mastercard Inc, PayPal Holdings Inc, and American Express Co. All four of these companies are in constant competition with one another to gain market share. While Visa and Mastercard are the traditional giants in the industry, PayPal and American Express have been making inroads in recent years.

– Mastercard Inc ($NYSE:MA)

Mastercard Inc is a technology company that connects consumers, financial institutions, merchants, governments and businesses around the world, enabling them to use secure and convenient electronic transactions. As of 2022, Mastercard Inc has a market cap of 287.75B and a ROE of 110.3%. The company operates in two segments: Global Payment Solutions and Data & Services.

– PayPal Holdings Inc ($NASDAQ:PYPL)

Founded in 1998, PayPal Holdings, Inc. is a technology platform company that enables digital and mobile payments on behalf of consumers and merchants. PayPal has over 300 million active customers and handles over $232 billion in total payment volume on an annual basis. The company operates as a payment processor for online vendors, auction sites, and other commercial users, for which it charges a fee. In addition, PayPal offers a credit product called “Bill Me Later,” which allows customers to finance their online purchases.

– American Express Co ($NYSE:AXP)

American Express Co is a multinational financial services corporation with a market cap of 107.94B as of 2022. The company is headquartered in Three World Financial Center in New York City. American Express Co is best known for its credit card, charge card, and traveler’s cheque businesses.

Summary

The company’s stock price has moved down in recent days, but its fundamentals remain strong. Visa is a global payments leader and its products and services are used by consumers, businesses, and governments around the world. The company has a diversified business model and a strong balance sheet, which should help it weather the current economic downturn. Given its long-term prospects, Visa looks like a good buy at its current price.