I think stocks are headed higher here because the AI trade remains strong and the consumer remains healthy and spending. We’re going to take advantage of that healthy consumer by adding credit card and payment firm Visa Inc. (V), notes Jim Woods, editor of Forecasts & Strategies.
Now, I know you know what Visa is, as I know you almost certainly have a Visa card in your wallet right now. We all do. But did you know that a position in V stock over the past four years would have bested the big S&P 500 Index (^SPX) gains we’ve seen?
(Editor’s Note: Jim is speaking at the 2027 MoneyShow/TradersEXPO Las Vegas, scheduled for Feb. 22-24. Click HERE to register.)
Over that four-year stint, V shares were up 125.1%, an impressive move indeed. But its recent move is what convinced me to embrace it here. The chart shows the six-month performance of V, which is up nearly 29%. The mid-June breakout in V shares was impressive, and the stock continues to trend higher.
As for fundamentals, V has seen robust growth in recent quarters and recent years. In fact, its earnings per share (EPS) growth rate in the past few quarters and few years ranks in the top 13% of all publicly traded companies. That robust growth has helped the shares outperform 80% of the market on a relative price strength basis over the past year.
Recommended Action: Buy V.