Pisani: Visa Stock Is Where Investors Want to Be

The Visa train keeps on track. Visa up 3 percent after the close as they reported GAAP earnings of $1.02 vs. consensus of $0.91, revenues in line with expectations.

Two key points:

1) both Visa and MasterCard are seeing volume growth because individuals are shifting from cash payments to electronic payments; and

2) Visa assures investors they can grow revenues 11 to 15 percent in 2010 AND grow earnings more than 20 percent (!). This helps to justify the very high valuation (23 x forward earnings).

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