Business Is Visa a stock to buy in 2023? Ana LopezJanuary 18, 20230336 views Visa’s (V) top and bottom line grew more than 20% year over year in the past fiscal year, despite the macro uncertainties. The stock has had stable returns in recent months. In addition, Wall Street analysts see more than 12% upside potential in the stock. So let’s see if you should invest in the stocks now…. shutterstock.com – StockNews Finance giant Visa Inc. (v) gained 20.4% over the past three months despite a falling market. Over the past six months, the stock is up 6.2% to close out the last trading session at $223.00. Despite the macro uncertainties and geopolitical turmoil, the company posted steady revenue growth in fiscal 2022, supported by strong consumer payments, resilience in e-commerce and continued recovery in cross-border travel. In addition, the company has a large market share because it connects consumers, businesses, banks and governments in more than 200 countries and territories. “As we look ahead, while there is some near-term uncertainty, we remain confident in Visa’s long-term growth trajectory for consumer payments, new flows and value-added services,” Alfred F. Kelly, Jr., Chairman and Chief Executive Officer, said Visa Inc. In addition, the growth of the digital economy and digital payments are driving V’s growth trajectory. The global digital payments market is expected to reach $228.37 billion by 2028 at a CAGR of 14.3%. Here’s what could affect V’s performance in the short term: Solid finances V’s net income was $29.31 billion for the year ended September 30, 2022, an increase of 21.6% year over year. Non-GAAP net income increased 24% year over year to $16.03 billion, while non-GAAP eps came in at $7.50, up 26.9% year-over-year. Favorable analyst expectations Analysts expect V’s revenue to grow 8.7% yoy to $31.86 billion in 2023 and 11.8% yoy to $35.61 billion in 2024. Earnings per share will expected to rise 10.3% yoy to $8.27 and 15.8% yoy to $9.58 in 2024. In addition, earnings per share are expected to grow 14.9% per annum over the next five years. The stock beat EPS estimates in all four subsequent quarters. Robust profitability V’s 12-month gross profit margin of 97.47% is 96.8% higher than the industry average of 49.53%. The 12-month EBITDA margin of 70.35% is 502.9% higher than the industry average of 11.67%. In addition, the net profit margin of 51.03% over 12 months is substantially higher than the industry average of 3.22%. In addition, the 12-month ROCE, ROTC and ROTA of 43.18%, 20.93% and 17.49% compared to the industry averages of 4.75%, 3.21% and 1.52% respectively. POWR ratings reflect promising outlook V has an overall rating of B, which equates to a Buy in our property POWR ratings system. The POWR ratings are calculated by considering 118 different factors, with each factor optimally weighted. V has an A grade for quality, consistent with higher-than-industry profit margins. It has a B rating for stability, in sync with the beta of 0.94. In the 48 stock Financial services for consumers industry is V at number 6. Click here for the additional POWR assessments for V (growth, value, momentum and sentiment). View all the top stocks in the consumer financial services sector here. It boils down V witnessed stable growth despite the macroeconomic headwinds. In addition, Wall Street analysts expect the stock to reach $250.58 soon, indicating a potential increase of 12.3%. Given the stock’s robust profitability and favorable outlook, I think V could be an ideal buy in 2023. How does Visa Inc. (V) stack up against his peers? While V has an overall POWR rating of B, one might consider looking at its peers, MainStreet Bancshares, Inc. (MNSB), EZCORP, Inc. (EZPW), and AssetMark Financial Holdings, Inc. (AMK), which have an overall B rating (Buy). V shares. Year-to-date, V has gained 7.34%, versus an increase of 4.01% in the benchmark S&P 500 index over the same period. About the author: Riddhima Chakraborty Riddhima is a financial journalist with a passion for analyzing financial instruments. Right away master’s degree in economicsshe helps investors make informed investment decisions through her insightful commentary. More… The mail Is Visa a stock to buy in 2023? appeared first on StockNews.com