We recently compiled a list of the 10 most promising long-term stocks by hedge funds. In this article, we’ll take a look at where Visa Inc. (V) ranks among the most promising long-term stocks according to hedge funds.
Further 50bps reduction remains restrictive
The labor market has never been more resilient. On October 4, Gary Cohn, vice chairman of IBM and former director of the National Economic Council in the Trump administration, appeared in an interview with Yahoo Finance and talked about employment statistics and the US economy.
Cohn suggested that the jobs report should be taken with a grain of salt because it’s not the most scientific information the government releases. However, we emphasize the importance of understanding trends. The number of people entering the labor force is expanding, jobs are being created, and the market is assumed to be in a neutral position.
Cohn believes the U.S. economy is normalizing. He clarified that the current situation is quite reasonable compared to history, as we have not had a normal economic life for more than a decade. He added that the Fed is orchestrating a soft landing and expects another 50 basis point rate cut by the end of 2024, which he says remains restrictive.
Portfolio manager highlights high-growth sectors
As the AI dust begins to subside, the market could see major changes. On October 7th, Keith Buchanan, senior portfolio manager at GLOBALT Investments, appeared in an interview with Yahoo Finance and talked about his expectations for the market.
Earnings expectations have been revised from mid-single digits to mid-double digits, promising solid growth as 2024 draws to a close. Buchanan suggested that much of the growth will come from artificial intelligence and the expansion of profit growth beyond traditional growth areas such as technology.
This year, the industrial and energy sectors accounted for the bulk of the market and enjoyed greater gains. Buchanan is extremely bullish on AI trends and value stocks. He also added that financial, industrial and consumer goods names are poised for growth into 2024. He advises investors to consider geopolitical events before making investment decisions.
Now that we’ve assessed the prospects and growth sectors of the financial markets, let’s take a look at the 10 most promising long-term stocks according to hedge funds.
our methodology
To find the most promising long-term hedge fund stocks, we looked at multiple rankings on the internet and compiled a list of long-term blue-chip stocks. We then looked at analyst upside and hedge fund sentiment for these stocks as of Q2 2024 and selected the most popular stocks. Stocks are sorted by ascending number of hedge fund holders as of Q2 2024 as a primary metric, with analyst upside as of October 13 as a secondary metric.
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Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Top 10 credit card stocks to buy right now
Visa Co., Ltd. (NYSE:V)
Number of hedge fund holders: 163
Analyst upside as of October 13, 2024: 14%
Visa Inc. (NYSE:V) is a payment card services provider based in the United States. Facilitate electronic fund transfers to people around the world. We also provide commercial patent solutions, sell cards, and offer B2B payment options. Over the past 12 months, Visa facilitated 296.8 billion transactions with a total value of $15.5 trillion.
The company is very focused on expansion. Last quarter, Visa Inc. (NYSE:V) partnered with Yape, a Peruvian super app with more than 15 million users, to facilitate direct money transfers via mobile devices. In addition to that, the digital wallet, which has more than 50 million users, now allows Vietnamese customers to use Visa cards.
Towards the end of September, the company announced the acquisition of Featurespace, an AI payment protection technology developer. This acquisition positions Visa as a key player in fraud detection and risk scoring. Visa Inc. (NYSE:V) also launched the Visa Commercial Solutions Hub, a pilot project to bring all commercial payment services under the same roof and disrupt the $145 trillion market.
Analysts have a bullish view on the stock, which is no surprise. The company has a strong network spread across 200 countries and territories around the world. Visa Inc. (NYSE:V) has more than 130 million merchants and more than 4.5 billion cards in circulation worldwide.
Aoris International Fund said the following about Visa Inc. (NYSE:V) in its Q2 2024 investor letter:
“Visa Inc. (NYSE:V) operates the world’s largest payments network that facilitates the movement of funds between merchants, financial institutions, consumers, businesses, and governments. It is best known for enabling payments with credit cards, with 4.3 billion Visa cardholders making 213 billion transactions on its network in the year to September 2023. The total amount reached USD 12.1 trillion Compared to cash and checks, which are still widely used around the world, Visa’s network is a more convenient, secure and ubiquitous payment method for consumers. Visa has invested in reducing friction and fraud in the payments experience for the benefit of merchants and consumers alike…” (Click here to read the full story)
Overall V ranks #5 on hedge funds’ list of most promising long-term stocks. While we recognize V’s potential, we believe AI stocks have a better chance of delivering higher returns in a shorter time frame. If you’re looking for AI stocks that are more promising than V but trade at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: $30 trillion opportunity: 15 humanoid robot stocks to buy, according to Morgan Stanley and Jim Cramer, says NVIDIA has ‘become a wasteland.’
Disclosure: None. This article originally appeared on Insider Monkey.
