If You Invested $1,000 In Visa Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now

Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.

Visa's Bumpy Ride: One company that has been a disappointing performer in the last two years has been credit card giant Visa Inc V.

At the beginning of 2020, Visa shares were trading at $189. By the beginning of March, the stock was down to $186.32 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.

When the market crashed during the U.S. COVID-19 outbreak, Visa shares dropped as low as $133.93 on March 23, 2020, during the height of the pandemic fears.

When the market bounced in late March, Visa began to rebound as well. The stock was back above $200 by June 2020 and back above pre-pandemic highs by early September.

After a pullback to $179.23 in October, Visa finished 2020 near its highs for the year at $218.73.

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Visa In 2021, 2022, Beyond: After a solid 2020, Visa maintained its momentum in the first half of 2021. The stock hit its post-pandemic high of $252.67 in July 2021 but was unable to maintain its momentum in 2022.

Visa finished 2021 at around $217, and its bearish momentum continued from that point.

Despite solid free cash flow numbers, a pristine balance sheet and consistent earnings and revenue growth, Visa shares were dragged down by the broad stock market weakness in 2022. Visa's stock historically traded with a high correlation to the U.S. economy as a whole, and investors have been concerned throughout 2022 that aggressive Federal Reserve rate hikes would push the economy into a recession in the first half of 2023.

Visa shares dropped as low as $174.60 in October 2022 before the stock bounced back. Visa is trading at the $209 level Tuesday. 

Still, investors who bought Visa on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in Visa stock bought on March 23, 2020, would be worth about $1,633 now, assuming reinvested dividends.

Looking ahead, analysts are expecting Visa's stock to continue to rebound in the next 12 months. The average price target among the 31 analysts covering the stock is $249, suggesting a 16.3% upside from current levels.

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Photo: varandah via Shutterstock.