Neil Patel, The Motley Fool

Sun, Jun 15, 2025, 10:15 AM4 min read

• Favorable tailwinds support Visa's durable double-digit growth, which is set to continue in the years ahead.

• The company's massive ecosystem, consisting of cards and merchants, creates a powerful network effect.

• Shares aren't trading at a bargain valuation, so investors must set realistic expectations.

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We all want to find that one investment that can make us huge returns. In the past, Visa (NYSE: V) has done just that.

The world's dominant payments processing entity has produced a total return of 2,880% since its initial public offering (IPO) in 2008. This means that had you been able to make a $10,000 investment in this top financial stock back then, you'd be staring at $298,000 in your portfolio today.

Shares now trade in record territory. And the company's market cap is at $721 billion. But if you buy today, can Visa set you up for life?

It might be obvious, but finding a business that has tremendous growth potential, particularly over the long term, can lead to strong investment gains. That's not a shocker. To be clear, though, Visa doesn't fall into this category anymore.

But that doesn't mean it's done growing. In fact, Visa registers durable growth, which is propelled by favorable tailwinds.

The first growth driver is the ongoing war on cash, as consumers and businesses adopt digital and noncash transaction methodologies. While developed economies, like the U.S. and Canada, have less of an opportunity these days, emerging markets in Asia and Africa still have meaningful potential.

Ongoing economic growth, which fuels spending, also benefits Visa. In the past 10 years, core personal consumption expenditures in the U.S. increased by 101%. Assuming the global economy continues to expand and is much larger decades from now, it's safe to say that Visa will gain.

According to consensus analyst estimates, the company's revenue and earnings per share are expected to climb at compound annual rates of 10.2% and 12.6%, respectively, between fiscal 2024 and fiscal 2027. I think it's fair-minded to expect this type of pace in the years after as well.

Besides durable growth, another reason for why Visa should be on every investor's watch list is because the company possesses an economic moat. It has built up a key sustainable competitive advantage that supports long-term success.

Visa has an incredible network effect. There are 4.8 billion of its cards active across the world. And 150 million merchants worldwide accept these cards. Cardholders find tremendous value because of how widely accepted Visa is. And the same is true for merchants, as being plugged into the Visa network means they don't have to turn down customers and lose out on potential sales.