Jim Cramer has urged investors to consider buying Visa (V) during periods of low market enthusiasm, highlighting the payment processor's strong fundamentals despite temporary sentiment challenges. The recommendation comes as the stock trades near multi-quarter lows.
- Visa (V) has declined 12% over the past three months despite strong underlying fundamentals.
- Fourth-quarter 2025 revenue reached $6.8 billion, up 8% YoY, with EPS of $2.63.
- Visa processes over 4.5 billion cards globally with 9% payment volume growth in Q4 2025.
- Forward P/E ratio of 28.5x is below the 5-year average of 32.7x.
- Cramer's contrarian call targets periods of low investor sentiment, often preceding rebounds.
- S&P 500 Financials Index down 6.3% YTD, highlighting sector-wide weakness.
Jim Cramer has recommened purchasing Visa (V) when the company is 'not loved' by the market, advocating for a contrarian approach amid recent investor skepticism. The recommendation underscores Cramer's long-standing philosophy of buying quality assets during periods of fear and overreaction. Visa, a global leader in payment processing, has seen its stock decline approximately 12% over the past three months, driven by concerns over slowing consumer spending and macroeconomic uncertainty. Despite the selloff, Visa maintains a dominant market position with over 4.5 billion cards in circulation and annual revenue exceeding $27 billion. The company reported fourth-quarter 2025 revenue of $6.8 billion, up 8% year-over-year, with adjusted earnings per share of $2.63, beating analyst expectations. Its operating margin remains above 70%, reflecting strong pricing power and cost discipline. The broader financial services sector has underperformed, with the S&P 500 Financials Index down 6.3% year-to-date. However, Visa's resilient payment volumes—up 9% in Q4 2025—suggest underlying demand resilience. Analysts tracking V have revised forward revenue estimates upward by an average of 3.1% over the past 60 days, indicating growing confidence despite short-term volatility. Investors in V may benefit from a potential rebound in consumer spending and a normalization of interest rate policy. The stock currently trades at a forward price-to-earnings ratio of 28.5x, below its 5-year average of 32.7x, offering a modest valuation discount relative to its peers. The recommendation is expected to drive increased trading volume and attention from both retail and institutional traders.