Visa Stock: Buy, Sell, or Hold?

(NYSE: V) has historically been a market-beating stock, but it's trailing the S 500 index during some recent periods, including so far in 2024. Does that mean it's past its prime, and you should pass it over? Not so fast. Let's see what's going on and whether it's worthwhile to buy or hold on to Visa stock right now.

Visa is a powerhouse company that plays an important role in the world economy. It has no match for its reach, with 4.3 billion credit and debit cards worldwide, easily outdoing any competition. That's a powerful moat, and it continuously invests in its business through technological innovation and partnerships to solidify its edge.

Its business model is fairly simple. Most of its revenue comes from swipe fees, which are the small payment it takes every time someone uses one of its cards. It has organic growth opportunities as more people become members and sign up for new cards. It sees its current addressable market in global payments as more $20 trillion, and its trailing-12-month total payments volume is more than $15 trillion, so it has ample room to increase that this year. It's working to capture more market share by expanding its network for paying bills like rent and education, and working with local networks to travel on Visa credentials.

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Source Fool.com