Visa stock has reached an all-time high, climbing 12% since October 1 to $401 per share. The surge comes after the company secured approval from the People's Bank of China to establish a bankcard clearing institution, opening up one of the world's largest markets. Additionally, Visa's stablecoin platform, Visa Direct, transitioned from pilot to commercial deployment on October 15, allowing businesses to use the stablecoin-enabled money movement system.
The stock's performance has caught the attention of analysts, with price target upgrades from Baird and BMO Capital. Visa is up 14% year to date, with most gains occurring in the past two weeks. The company reports its fiscal fourth-quarter earnings on October 27, and investors anticipate a substantial dividend increase, as Visa has raised its dividend every year since 2009.
Visa expects revenue growth at the high end of low double digits for Q4, similar to the 14% gain in Q3. For the full fiscal year, it anticipates revenue growth in the low-teens and earnings per share growth in the low- to mid-teens. Despite the stock's recent surge, some analysts still consider it a buy, citing its forward P/E of 24 and durability across markets.
However, The Motley Fool Stock Advisor analyst team did not include Visa in their list of top 10 stocks to buy now, suggesting other opportunities may offer higher potential returns. Visa's long-term performance and consistent dividend increases make it an attractive option for investors seeking stability and growth.