The Zacks Analyst Blog Highlights Visa, Johnson & Johnson, Thermo Fisher and AMREP
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2025
0mins
Source: NASDAQ.COM
Featured Stocks: The Zacks Analyst Blog highlights stocks such as Visa Inc., Johnson & Johnson, Thermo Fisher Scientific, and AMREP Corporation, providing insights into their performance, growth strategies, and market challenges.
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Analyst Views on V
Wall Street analysts forecast V stock price to rise
25 Analyst Rating
23 Buy
2 Hold
0 Sell
Strong Buy
Current: 324.950
Low
330.00
Averages
406.59
High
450.00
Current: 324.950
Low
330.00
Averages
406.59
High
450.00
About V
Visa Inc. is a global payments technology company. It facilitates global commerce and money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through technologies. It operates through the Payment Services segment. It provides transaction processing services (primarily authorization, clearing and settlement) to its financial institution and merchant clients through VisaNet, its proprietary advanced transaction processing network. It offers a range of Visa-branded payment products that its clients, including nearly 14,500 financial institutions, use to develop and offer payment solutions or services, including credit, debit, prepaid and cash access programs for individual, business and government account holders. It also provides value-added services to its clients, including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions and advisory services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Visa Reports Strong Q2, Authorizes Record Buyback
- Significant Revenue Growth: Visa reported $11.2 billion in revenue for Q2 FY2026, marking a 17% year-over-year increase, the highest growth since 2022, indicating strong market performance and sustained customer demand.
- Record Buyback Authorization: The board approved a historic buyback plan, authorizing $33 billion in stock repurchases, aimed at enhancing earnings per share and increasing shareholder returns, reflecting the company's confidence in future growth.
- Transaction Volume Continues to Rise: Visa processed 66.1 billion transactions in Q2, a 9% year-over-year increase, demonstrating the strong appeal of its network and solidifying its market share in the global payments landscape.
- Exceptional Cash Flow Performance: Visa generated $9.8 billion in free cash flow in the first half of FY2026, maintaining a 41% free cash flow margin, showcasing its strong profitability and financial health, providing ample funds for future investments and buybacks.
See More
Reasons Behind Buffett's Hold on American Express
- Portfolio Concentration: Under CEO Greg Abel's leadership, Berkshire Hathaway has streamlined its $330 billion equity portfolio from 42 to 29 high-conviction stocks, demonstrating a strong commitment to quality assets that is expected to enhance investment returns.
- Divestiture of Smaller Holdings: Abel sold off several smaller positions, including Visa and Mastercard, with Visa accounting for 1% of the total portfolio, indicating decisive action in optimizing the investment strategy, which may strengthen overall financial health.
- American Express Competitive Edge: American Express has successfully withstood economic pressures with its unique membership model and affluent customer focus, achieving an 18% year-over-year increase in fee revenue, which accounted for 14% of total revenue, showcasing the resilience and appeal of its business model.
- Outperformance Against Peers: Over the past five years of macroeconomic volatility, American Express has outperformed both Visa and Mastercard by more than double, reflecting its durable competitive advantage and solidifying its value as a reliable investment.
See More
Analysis of American Express's Competitive Advantage
- Significant Competitive Edge: American Express's unique business model has allowed its stock to outperform Visa, Mastercard, and the S&P 500 over the past five years, demonstrating its durable competitive advantage in the credit card industry.
- Executive Strategic Shift: Under the leadership of new CEO Greg Abel, Berkshire Hathaway has concentrated its $330 billion equity portfolio from 42 to 29 high-conviction stocks, selling off shares in Visa and Mastercard while retaining American Express, indicating a strategic focus on more compelling investments.
- Membership Revenue Growth: In Q1 2026, 70% of new products from American Express were fee-based, with annual fee revenue increasing by 18% year-over-year, accounting for 14% of total revenue, highlighting the effectiveness of its membership model in enhancing customer loyalty and revenue stability.
- Economic Resilience: By targeting affluent customers, American Express has shown resilience even under economic pressure, and its proprietary banking model allows for better control over operations and revenue streams, particularly advantageous in a high-interest-rate environment.
See More
Visa Named Among Top Long-Term Dividend Stocks by Billionaires
- Strategic Investment Partnership: Visa has partnered with Replit to expand the application of AI-driven software development, with Visa investing in Replit, reflecting its long-term view on the future of commerce infrastructure.
- Internal Development Support: Visa adopted the Replit platform to support internal prototyping and software development, with over 1,000 employees currently using it, enhancing development efficiency and innovation capabilities.
- Intelligent Commerce Integration: The companies are exploring ways to integrate Visa Intelligent Commerce into the Replit platform, allowing developers to embed secure payment functionalities directly into their workflows, enhancing application capabilities.
- Global Payment Network: As a global payments technology company, Visa facilitates commerce and money movement across more than 200 countries and territories, further solidifying its market position.
See More
Analysis of American Express and Visa Business Models
- Business Model Differences: American Express operates a closed-loop payment system that captures all transaction economics and primarily targets affluent clients, while Visa functions as an open-loop system, acting as a toll booth that collects small fees from users across various income levels.
- Profitability Comparison: Over the past five years, Visa's average quarterly operating margin reached an impressive 67.3%, compared to American Express's 20.6%, enabling Visa to pay $1.3 billion in dividends and repurchase $7.9 billion in stock in Q2 2023.
- Growth Trend Analysis: American Express's diluted earnings per share (EPS) grew at a compound annual rate of 9.3% over the past five years, while Visa's EPS increased at a remarkable 17.9%, indicating Visa's superior growth potential and valuation multiple.
- Investor Considerations: While Visa's price-to-earnings (P/E) ratio stands at 28.8, significantly higher than American Express's 19.9, its stable profitability and lower credit risk make it a more attractive investment choice, especially during economic cycles of volatility.
See More
Buffett's Transition Leaves Berkshire Hathaway's Future Bright
- Buffett's Transformational Success: Under Buffett's leadership, Berkshire Hathaway evolved from a struggling textile manufacturer in 1965 to a $1 trillion conglomerate, showcasing exceptional investment acumen and management prowess that will continue to influence global markets.
- Successor's Strategic Continuity: New CEO Greg Abel, who worked alongside Buffett for over 20 years, is expected to maintain the investment strategy focused on stable growth and shareholder-friendly companies, ensuring Berkshire's long-term success.
- Apple Investment Returns: Berkshire's investment in Apple reached $38 billion from 2016 to 2023, with a valuation exceeding $170 billion by early 2024; despite selling 75% of its stake, it still represents 21.5% of its portfolio, with projected dividends of $243.9 million in 2026.
- Dividend Contributions from Coca-Cola and American Express: Coca-Cola and American Express are set to contribute $848 million and $556.4 million in dividends to Berkshire, respectively, highlighting the company's strong cash flow and long-term investment returns, further solidifying its financial foundation.
See More
Visa Reports Strong Q2, Authorizes Record Buyback
- Significant Revenue Growth: Visa reported $11.2 billion in revenue for Q2 FY2026, marking a 17% year-over-year increase, the highest growth since 2022, indicating strong market performance and sustained customer demand.
- Record Buyback Authorization: The board approved a historic buyback plan, authorizing $33 billion in stock repurchases, aimed at enhancing earnings per share and increasing shareholder returns, reflecting the company's confidence in future growth.
- Transaction Volume Continues to Rise: Visa processed 66.1 billion transactions in Q2, a 9% year-over-year increase, demonstrating the strong appeal of its network and solidifying its market share in the global payments landscape.
- Exceptional Cash Flow Performance: Visa generated $9.8 billion in free cash flow in the first half of FY2026, maintaining a 41% free cash flow margin, showcasing its strong profitability and financial health, providing ample funds for future investments and buybacks.
See More
Reasons Behind Buffett's Hold on American Express
- Portfolio Concentration: Under CEO Greg Abel's leadership, Berkshire Hathaway has streamlined its $330 billion equity portfolio from 42 to 29 high-conviction stocks, demonstrating a strong commitment to quality assets that is expected to enhance investment returns.
- Divestiture of Smaller Holdings: Abel sold off several smaller positions, including Visa and Mastercard, with Visa accounting for 1% of the total portfolio, indicating decisive action in optimizing the investment strategy, which may strengthen overall financial health.
- American Express Competitive Edge: American Express has successfully withstood economic pressures with its unique membership model and affluent customer focus, achieving an 18% year-over-year increase in fee revenue, which accounted for 14% of total revenue, showcasing the resilience and appeal of its business model.
- Outperformance Against Peers: Over the past five years of macroeconomic volatility, American Express has outperformed both Visa and Mastercard by more than double, reflecting its durable competitive advantage and solidifying its value as a reliable investment.
See More
Analysis of American Express's Competitive Advantage
- Significant Competitive Edge: American Express's unique business model has allowed its stock to outperform Visa, Mastercard, and the S&P 500 over the past five years, demonstrating its durable competitive advantage in the credit card industry.
- Executive Strategic Shift: Under the leadership of new CEO Greg Abel, Berkshire Hathaway has concentrated its $330 billion equity portfolio from 42 to 29 high-conviction stocks, selling off shares in Visa and Mastercard while retaining American Express, indicating a strategic focus on more compelling investments.
- Membership Revenue Growth: In Q1 2026, 70% of new products from American Express were fee-based, with annual fee revenue increasing by 18% year-over-year, accounting for 14% of total revenue, highlighting the effectiveness of its membership model in enhancing customer loyalty and revenue stability.
- Economic Resilience: By targeting affluent customers, American Express has shown resilience even under economic pressure, and its proprietary banking model allows for better control over operations and revenue streams, particularly advantageous in a high-interest-rate environment.
See More
Visa Named Among Top Long-Term Dividend Stocks by Billionaires
- Strategic Investment Partnership: Visa has partnered with Replit to expand the application of AI-driven software development, with Visa investing in Replit, reflecting its long-term view on the future of commerce infrastructure.
- Internal Development Support: Visa adopted the Replit platform to support internal prototyping and software development, with over 1,000 employees currently using it, enhancing development efficiency and innovation capabilities.
- Intelligent Commerce Integration: The companies are exploring ways to integrate Visa Intelligent Commerce into the Replit platform, allowing developers to embed secure payment functionalities directly into their workflows, enhancing application capabilities.
- Global Payment Network: As a global payments technology company, Visa facilitates commerce and money movement across more than 200 countries and territories, further solidifying its market position.
See More
Analysis of American Express and Visa Business Models
- Business Model Differences: American Express operates a closed-loop payment system that captures all transaction economics and primarily targets affluent clients, while Visa functions as an open-loop system, acting as a toll booth that collects small fees from users across various income levels.
- Profitability Comparison: Over the past five years, Visa's average quarterly operating margin reached an impressive 67.3%, compared to American Express's 20.6%, enabling Visa to pay $1.3 billion in dividends and repurchase $7.9 billion in stock in Q2 2023.
- Growth Trend Analysis: American Express's diluted earnings per share (EPS) grew at a compound annual rate of 9.3% over the past five years, while Visa's EPS increased at a remarkable 17.9%, indicating Visa's superior growth potential and valuation multiple.
- Investor Considerations: While Visa's price-to-earnings (P/E) ratio stands at 28.8, significantly higher than American Express's 19.9, its stable profitability and lower credit risk make it a more attractive investment choice, especially during economic cycles of volatility.
See More
Buffett's Transition Leaves Berkshire Hathaway's Future Bright
- Buffett's Transformational Success: Under Buffett's leadership, Berkshire Hathaway evolved from a struggling textile manufacturer in 1965 to a $1 trillion conglomerate, showcasing exceptional investment acumen and management prowess that will continue to influence global markets.
- Successor's Strategic Continuity: New CEO Greg Abel, who worked alongside Buffett for over 20 years, is expected to maintain the investment strategy focused on stable growth and shareholder-friendly companies, ensuring Berkshire's long-term success.
- Apple Investment Returns: Berkshire's investment in Apple reached $38 billion from 2016 to 2023, with a valuation exceeding $170 billion by early 2024; despite selling 75% of its stake, it still represents 21.5% of its portfolio, with projected dividends of $243.9 million in 2026.
- Dividend Contributions from Coca-Cola and American Express: Coca-Cola and American Express are set to contribute $848 million and $556.4 million in dividends to Berkshire, respectively, highlighting the company's strong cash flow and long-term investment returns, further solidifying its financial foundation.
See More
