Visa will truly be everywhere you want to be. This will now include your smart phone. They recently did a deal with Intel to make a chip that will be able to process credit card transactions from your phone. It will likely work by you merely waving your phone in front of a device at the cashier. This will revolutionize the payment industry.
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This will make it that much easier to pay with your Visa. Not only will the number of transactions will go up, but the price per ticket will go up as well. Since Visa charges a percentage for every transaction, this will be a boon for this company and this stock. I think this is a great stock to buy now.
It is a well known fact that when people use credit cards instead of cash, they spend more. It is also known that people spend more when they wave their cards instead of swipe. Waving a phone instead of reaching into your wallet will make it much, much easier to pay and spend money. That is good for Visa’s business.
They already have a really good growth track record. In the past 5 years, they have grown their revenues by a rate of 25.53%. They have grown their EPS in the past 5 years at a rate of 44.62%. Those are great growth numbers.
Their cash flow from operating activities has risen over the past few years. It rose from $531 million to $3.87 billion from 2008 to 2011.
Their stock price has reflected these revenue and earnings growth figures. Their shareholder value is up almost 60% in the past year.
Remember that investing is a very risky activity. You can lose all or most of your initial investments. Consult a licensed financial advisor before implementing any investment strategy. Historical performance is no guarantee of future performance. No one can accurately predict the future, at least not consistently over time. The writer of this article and owner of this website do not own any of the stocks mentioned in this post.