Expert Says This Fintech Stock Is ‘Quality at a Reasonable Price’

Visa Inc (NYSE:V) is a prime example of what you call ‘quality at a reasonable price’ and that’s reason enough to go long on that title, says Malcolm Ethridge – the executive vice president of CIC Wealth .

Ethridge’s Bullish Case in Visa Stock

Shares of the financial services giant are trading at their pre-pandemic price at the time of writing. But at that same price, Ethridge noted on CNBC’s “Fast Money,” the multinational is far more attractive now than it was about three years ago.

[Visa] is a quality company with strong financials that has sold so much that it gives us a chance to buy at pre-pandemic levels, but with technology enhancements and other upgrades to its payment network over the course of of the past two years.

Its fortress of a balance sheet with around $18 billion in free cash flow, relatively low debt and continued double-digit earnings growth were among other reasons cited for the constructive view.

Last month, Visa reported better-than-market results for its fourth financial quarter, with payments volume approaching nearly $3 trillion. Visa stock is currently down more than 10% from its 52-week high.

Visa could take advantage of the FTX fiasco

Ethridge isn’t entirely convinced by the narrative that consumer spending will decline significantly in the future. So far, the consumer is also expected to remain resilient this holiday season.

When it comes to using their cards, Visa makes money even if they negotiate, he added. More interestingly, Ethridge expects Visa Inc to be a beneficiary of the recent and much-talked-about FTX crash we’ve covered here.

Visa also recently filed trademarks related to a crypto wallet, which given FTX and Block Fi may mean they find themselves in the longer term with a whole new set of customers coming in search of a place safer to keep this crypto.

Its bullish view is in line with Wall Street also recommending buying Visa stocks here.

Eleanor C. William