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High-Growth Stocks to Buy #1: Visa (V)

High-growth stocks Visa stockSurprised that Visa (V), the payments processor that has been a household name for decades, is a high-growth stock?

Well just look at the numbers yourself:

Revenue has grown from $8.1 billion in 2010 to a projected $12.8 billion this year and $14.2 billion in fiscal 2015 — tracking sales growth of 75% in five years.

Profits also have soared from $3.65 billion in net income for fiscal 2011 to roughly $5 billion at the end of fiscal 2013 — 37% growth in just two years — with a forecast of double-digit growth in earnings both this year and next.

The reason? Well, America has long gone cashless with the rise of debit cards and online banking … but emerging markets are still very much moving into the age of payments using Visa-branded plastic. As the middle classes continue to grow in Latin America and Asia and more global residents start using banks, Visa is seeing increasingly brisk business.

After all, Visa is not a financial company that worries about lending. It is simply the toll-taker, earnings a few pennies each time someone uses a credit or debit card with its logo.

And with the decline of cash and the rise of digital payments, those transactions are becoming more common at home and abroad with each passing day.

Visa has pulled back a bit this year, but I like the stock at or around $200 per share.

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