In this article, we discuss the 5 blue chip stocks hedge funds love. In order to read our detailed analysis of blue chip stocks and the current market situation, go directly to 10 Blue Chip Stocks Hedge Funds Love.
5. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 159
Visa Inc. (NYSE:V) is up next on the list of best blue chip stocks that hedge funds love. The California-based firm provides payment technologies and services to users, merchants and businesses around the world. As of the end of the first quarter of 2022, 159 hedge funds owned positions in Visa Inc. (NYSE:V) with an aggregate value of $28.07 billion. This shows a positive trend from the preceding quarter, where 142 hedge funds were stakeholders in the payment technology firm.
In the first quarter, Visa Inc. (NYSE:V) reported earnings per share of $1.79, outperforming analysts’ estimates by $0.14. Revenue of $7.19 billion for the quarter showed growth of 25.48% in comparison to the same period over last year, and exceeded analysts’ estimates by $366.9 million.
On May 17, Goldman Sachs analyst Will Nance initiated coverage of Visa Inc. (NYSE:V) with a ‘Buy’ rating, and placed the stock on the firm’s ‘Americas Conviction List’. He set his price target at $282, implying a 43% upside. Nance sees the firm as a global leader with “attractive leverage to the long-term secular growth driver from payment electronification.”
Baron Funds, an investment firm, discussed the performance and future prospects of Visa Inc. (NYSE:V) in its Q1 2022 investor letter. Here is what it said:
“Shares of global payment network Visa, Inc. (NYSE:V) were up 2.5% on strong quarterly results with 24% revenue growth and 27% EPS growth. Payment volume grew 20% with notable strength in cross-border volumes as travel activity rebounded from depressed levels. Management raised full-year guidance to reflect high-teens revenue growth. Shares also likely benefited from a “flight to safety” during a volatile quarter for equities. We continue to own the stock due to Visa’s long runway for growth underpinned by the continued migration from cash transactions to card/digital and strong competitive advantages, operating in a duopoly with Mastercard.”