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Big Money Flows to Visa

By:
Lucas Downey
Published: Feb 5, 2025, 08:08 GMT+00:00

Strong earnings send Visa Incorporated (V) shares higher.

Visa plastic electronic, credit card. FX Empire
In this article:

V is one of the world’s largest payment networks, with its credit and debit cards in wallets around the globe. The company enjoys about 70% market share for payment cards in the U.S. And its international growth has been strong, with cross-border volumes (excluding within Europe) having rose 16% in the last quarter. Visa is also growing its business via direct global payments and tie-ins with cryptocurrencies.

As for earnings, V recently reported for the first quarter of fiscal 2025. Its international gains helped produce net revenue of $9.5 billion, which is up 10% from a year prior. V’s per-share earnings rose 14% on a year-over-year basis as well. These strong metrics enabled V to repurchase its shares and pay $1.2 billion in dividends to shareholders.

It’s no wonder V shares are up more than 9% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Visa Shares in Demand

Institutional volumes reveal plenty. Recently, V has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in V shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com

Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with Visa.

Visa Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, V has had strong sales and earnings growth:

  • 3-year sales growth rate (+14.3%)
  • 3-year earnings growth rate (+20.1%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.1%.

Now it makes sense why the stock has been powering to new heights. V has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Visa has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times since 2008. The blue bars below show when V was a top pick…rising with Big Money support:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Visa Price Prediction

The V rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns positions in V in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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