Stocks

Visa (V): A Solid Investment for Long-Term Portfolio Growth

Published December 8, 2023

Investing in the stock market can be overwhelming, with numerous choices and complex strategies. However, long-term investing is a proven approach to achieving financial success. One effective way to build a robust investment portfolio is to focus on top-rated stocks that demonstrate strong potential for growth and resilience.

The presence of resources like premium services that provide daily updates on stock rankings, equity research reports, and various screening tools can greatly facilitate investor decisions. These services offer insights into which stocks to buy or sell and highlight today's most promising industries.

Introducing the Focus List

One significant resource for investors is the Focus List, a portfolio comprising 50 top stocks poised to outperform the market over the next year. Each stock on the list is picked for its solid fundamentals and potential as a long-term investment, and full analyst reports add depth to the selection rationale.

Noteworthy is the historical performance of such a list. For instance, one portfolio might have achieved an annualized gain of 13.85% compared to the S&P 500's 9.38% over a given year, and an impressive cumulative return since inception compared to the S&P's returns, further validating the list's reliability.

The Science Behind Stock Selection

Stocks are chosen for the Focus List based on their earnings estimate revisions, which reflect analysts' anticipations of a company's growth and profitability. Analysts work closely with company management to assess various aspects that could impact future earnings, such as economic conditions and sector trends.

Upward revisions often lead to further enhancements in the future, which is why they are a critical factor in the stock selection process. This is where proprietary rating models like the Zacks Rank, centered on earnings estimate revisions, come into play, aiming to simplify the process of building a profitable portfolio.

Stocks on the Focus List are selected from companies with top ratings, indicating a strong consensus among analysts for future earnings growth. As a result, these stocks are likely to experience positive price momentum as their earnings estimates are raised.

Visa (V) in Focus

Visa Inc., a major payments technology company established in 1958, represents an example of a strong Focus List contender. Since its addition to a certain portfolio at $94.67 per share, the stock has seen substantial appreciation, soaring over 170%. Analysts have adjusted their earnings estimates upward for the forthcoming fiscal year and Visa is touted to show year-on-year earnings growth.

Ultimately, such tools and analyses simplify the investment process, providing access to handpicked stocks that could enhance portfolio performance.

investing, stocks, Visa