Visa Inc is a US-based financial services company offering electronic payment and transfer systems to the public and organisations. The stock currently looks very strong

Visa Inc (NASDAQ: "V") is an American financial and payment services company. It is the most valuable payment company with a market cap of $508bn. The company was founded in 1953 and went public on the stock market in March of 2008 with a share price of just $15. That represents a 1686% in just 13 years....impressive! Visa is up against some stiff competition though, mainly in the likes of Mastercard, Square, PayPal and numerous other companies.

From a financial aspect, the company is strong. Total market capitalisation is $508bn with 2020 revenue at $21.8bn and a profit after tax of $10.86bn. While revenue is small, profit margins are very high and as revenue increases profit will too, unlike some competitors who have to spend money and R&D since they're new to the industry. Based on Q1 of 2021 if Visa can continue its path turnover will be about $22.8bn with a profit after tax of $12.3bn. Looking at the balance sheet, cash on hand is strong at $19.4bn with total assets amounting to $80.1bn. Total liabilities amounted to $42.49bn, leaving Visa net positive $37.6bn. This gives the company a L/A ratio of 52.99%, in line with stock market averages and below average for the payments industry (which is good). For comparison, Square Inc has a L/A ratio OF $79.9% and PayPal Inc is about 73.1%.

From a technical aspect, Visa is strong. On the daily timeframe, MACD is positive with an RSI reading of 60.9 suggesting a high value but not overbought. Plenty of support sits below for the stock, firstly $238.28 followed by major trendline support at $231. A break below here could take Visa towards $220. Looking to the upside, initial targets are $240, followed by $250 and then $275 for the medium term.

Overall Visa is a very established company. The financials are superb and while growth seems reasonably limited, profit margins are outstanding. No competitor comes even close to the margins that Visa can achieve. As a result of this Visa is a popular investment for many investors so demand will always be there. The technicals also indicate further upside too with $275 as a medium-term target, representing a 15.5% increase from its current price. One issue however for Visa is it could be seen as a more risk-off investment as it is a slow-moving stock, similar to Realty Income inc.