Best Growth Stocks for Retirement: Visa (V)
Global payment network Visa Inc (NYSE:V) sits at the intersection of two of the most powerful trends in the world today: the rise of internet commerce and the rise of the emerging-market consumer.
The first point is easy enough to understand. Amazon.com, Inc. (NASDAQ:AMZN) and its online brethren are turning the traditional world of retail upside down, and online purchases require online payments. Visa faces competition here from PayPal Holdings Inc (NASDAQ:PYPL), Apple Inc. (NASDAQ:AAPL) and countless other upstarts. But a rising tide lifts all boats, and Visa has name recognition and acceptance rates that none of its competitors can rival.
Meanwhile, most emerging-market economies are still largely cash-based, particularly when you get outside of the wealthier parts of the major cities. As the emerging world modernizes, Visa will grow right along with it.
Visa trades at 23 times next year’s expected earnings, so it’s by no means a cheap stock. But given its growth prospects, I don’t consider it overpriced.