Visa Inc. V recently unveiled its inaugural Retail Spend Monitor, an initiative by Visa Consulting & Analytics (VCA). The report reveals 4.8% year-over-year growth in U.S. holiday retail spending across all payment methods, signaling strong consumer confidence and adaptability in the market.

This report highlights a resurgence in in-store shopping, accounting for 77% of payment volume, with retail sales growing 4.1% in physical locations compared with 1.6% the previous year. Meanwhile, online shopping continued its steady rise, with a 7.1% increase in sales, underscoring its convenience for holiday consumers. The report also highlights Visa's role in combating fraud, with nearly double the suspected fraud blocked during key shopping events in 2024 compared with 2023.

Specific sectors experienced notable growth, including electronics, which posted a 4.2% increase in sales and clothing and accessories saw a robust 5% growth. Building materials also rebounded significantly, with a 4.7% rise compared with a decline last year, reflecting consumers’ focus on home improvements.

Globally, holiday spending trends were similarly positive. Brazil led with a 12.2% growth rate, followed by South Africa’s 7% and Australia’s 7.4% increases. The U.K. also saw a modest 2.3% rise. These global gains across multiple categories underscore this holiday season's universal consumer enthusiasm.

The VCA Retail Spend Monitor report shows the strength of Visa Consulting and Analytics business. In fiscal 2024, VCA delivered 3,000 plus consulting engagements, doubling year over year, and aided clients in achieving an estimated $5 billion in incremental revenues. With Visa Consulting and Analytics’ robust analysis of trends and spending behavior, clients can make informed decisions that make them realize incremental revenues in the future. Visa’s value-added services revenues showed a 22% year-over-year revenue increase in the fiscal fourth quarter of 2024.

Visa's Price Performance

Shares of Visa have gained 17.7% in the past three months compared with the industry’s 14.9% growth.

V’s Zacks Rank & Key Picks

Visa currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Business Services space are Parsons Corporation PSN, Coinbase Global, Inc. COIN and RB Global, Inc. RBA. Parsons and Coinbase Global currently sport a Zacks Rank #1 (Strong Buy), and RB Global carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .