We came across a bullish thesis on Visa Inc. (V) on Substack by Chit Chat Stocks. In this article, we will summarize the bulls’ thesis on V. Visa Inc. (V)'s share was trading at $348.02 as of Feb 7^th. V’s trailing and forward P/E were 35.08 and 30.86 respectively according to Yahoo Finance.

Visa remains one of the most resilient and dominant players in the payments industry, continuing to show robust performance with 9% growth in payment volume and a 7% increase in total cards in circulation for Q1 2025. Despite the ongoing conversation about potential threats from fintech and alternative payment methods, Visa's competitive moat only strengthens with time, benefiting from scale and a business model that’s highly resistant to inflation. The company's history is a testament to its exceptional business quality, having delivered a 21.6% total return CAGR since its IPO in 2008. While Visa often trades at elevated multiples, there are rare moments when it is priced at a significant discount, such as in October 2022 and 2016, presenting an attractive opportunity for long-term investors. With its reinforcing advantages, Visa is likely to remain a top player in the sector for decades to come. For investors, the focus should be on the long-term strength and consistency of Visa’s business, and if Mr. Market provides an opportunity to buy shares at a discount, it’s a chance to add a proven compounder to the portfolio.

Visa Inc. (V) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held V at the end of the third quarter which was 163 in the previous quarter. While we acknowledge the risk and potential of V as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.