I bought $Visa(V)$ because it has a strong earnings track record and mutual funds are taking notice as they grow their stake in the credit card giant.

Despite looming recession fears, overall holiday spending in 2022 among U.S. shoppers is expected to match 2021 levels – $1,455 per consumer – according to a Deloitte survey.

Meanwhile, Visa dominates U.S. credit card networks by transactions and cards in circulation. But it has ample room to grow in digital payments, while pursuing new bets in fintech and cryptocurrencies. Visa has less exposure to interest-rate risk. Visa neither earns revenue from nor bears risk tied to the interest or fees paid by cardholders. Instead, Visa derives revenue from client services, data processing, cross-border transactions and value-added services, such as licensing fees. Its network spreads across more than 200 countries and regions. Over the past three years, Visa averaged 11% EPS growth and 8% sales growth, according to the IBD Stock Checkup tool. On key earnings and sales metrics, Visa stock earns an EPS Rating of 92 out of 99, and an SMR Rating of A. The EPS rating reflects a company's health on fundamental earnings, and its SMR Rating measures sales growth, profit margins and return on equity.

Visa reported full-year fiscal EPS for 2022 of $7.50 on 25 Oct 22, topping estimates. Revenue jumped 22% to $29.3 billion, also beating views.

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