- Oops!Something went wrong.Please try again later.
Visa Inc. V recently provided updates on its operational metrics for May 2021. Operational metrics for the month were generally consistent with or better than both the 2019 levels and the April 2021 reading.
The company’s operational metrics showed broad-based strength with a quarter-to-date increase in U.S Payment volumes, processed transactions and cross-border volumes.
U.S payment volumes improved on higher spending by consumers, driven by stimulus payments and an upbeat consumer sentiment.
While travel spend was still below the 2019 tally, the same has steadily increased over the past several months.
International market payments volume trends in May compared with the same period in 2019 were relatively stable. Business from India remained weak as the country was impacted by the newly-imposed COVID-related restrictions.
Conversely Europe business was favourable as, many countries’ economy was on the mend compared with the pre-COVID 2019 levels following the easing of pandemic-related constraints.
Also, both of Visa’s Card not present excluding travel and card present made a marked progress. The strength in card not present shows that people are increasingly resorting to contactless mode of payments.
Visa performed well in the first half of fiscal 2021,with growth registered in payments volume (the primary lever of service revenues) as well as in the number of processed transactions (the primary driver for data processing revenues), reflecting better operating efficiency.
The company will recoup its revenue gains in the coming quarters on the back of its market monopoly and an attractive core business that continues to be aided by deal wins, renewed agreements, accretive acquisitions, increasing spending via cards, shift to the digital form of payments and an expansion of its service portfolio.
Other stocks in the same space including American Express Co. AXP , Mastercard Inc. MA and Discover Financial Services DFS are also set to benefit from the revival of consumer spending.
Year to date, the stock has gained 4.3% compared with its industry’s decline of 0.3%.
Image Source: Zacks Investment Research
Visa carries a Zacks Rank #3 (Hold), presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Express Company (AXP) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Discover Financial Services (DFS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research