Is Visa Stock Worth Buying Now After a 24.4% Surge in 6 Months?

Core Viewpoint - Visa Inc. is experiencing strong financial performance driven by increased cross-border volumes and the growing adoption of digital payments, with a notable stock price increase of 24.4% over the past six months [1] Financial Performance - Visa's net revenues for fiscal 2024 reached $35.9 billion, marking a 10$9.5 billion [4] - Adjusted EPS for fiscal 2024 grew 15% to $10.05, while the first quarter of fiscal 2025 saw a 14$2.75 [6] Growth Drivers - Key growth drivers include a 15% increase in cross-border volume in fiscal 2024, accelerating to 16% in Q1 2025, alongside a 10% growth in processed transactions for fiscal 2024 and an 11% increase in Q1 2025 [5][7] - Payments volume rose 6.7% in fiscal 2024 and 7.3% in Q1 2025, contributing significantly to revenue growth [8] Revenue Segments - In Q1 2025, Visa reported year-over-year increases in key revenue segments: Service Revenues up 7.5%, Data Processing Revenues up 8.9%, and International Transaction Revenues up 14% [9] Operational Strength - Visa's strong operating cash flow supports both organic growth and strategic acquisitions, enhancing its competitive edge in the payments industry [10] Fiscal Outlook - Visa projects low-double-digit net revenue growth for fiscal 2025, with operating expenses expected to rise in the high single-digit to low double-digit range [11] - The Zacks Consensus Estimate indicates a 12.5% and 12.6% increase in EPS for fiscal 2025 and fiscal 2026, respectively, with revenue growth estimates of 10.2% and 10.3% [12] Valuation - Visa is currently trading at a forward P/E ratio of 28X, higher than its five-year median of 26.89X and the industry average of 23.04X [13] Challenges - Rising expenses, with adjusted operating expenses increasing by 10.8% in fiscal 2024 and 11.4% in Q1 2025, alongside legal challenges and regulatory hurdles, pose risks to short-term growth [15][16][17] Investment Perspective - Visa's strong market position and growth potential make it an attractive long-term investment, though new investors may consider waiting for a more favorable entry point due to its premium valuation [18][19]