As for Visa, worldwide adoption of credit cards is on the rise. In countries like India and China, where cash has been the only mode of transaction, banks are slowly starting to extend lines of credit, and that too is restricted to wealthy clientele. Most local merchants do not offer the convenience of credit cards and even ATM machines are not very common. Outside of North America and Europe, most of the world still deals very much in cash. This bodes well for Visa as the rest of the world steps up to the safer and more convenient mode of transactions – the credit card. Evidence of this can be derived from their recent earnings report where the company reported a 44% increase in revenue from international transaction fees alone.

Total operating revenue rose to $1.61 billion from $1.37 billion in the same quarter a year earlier and net income for the fiscal third quarter ended June 30 was $422 million, or 51 cents per share, an increase of 41% from a year ago when the company was private.

Critics say that tightening credit in the US is some cause for concern, however, this should be off-set by the increased usage of credit cards including the US where more cash-strapped consumers are turning to credit cards.

I have been bullish on the stock since it went public and wrote a piece titled "Visa – It's everywhere you want to Invest" at the time of its IPO. Since then, the stock hit a high of $90 in May before pulling back some 20%. Despite great earnings, the stock has tumbled 10% in the last few days, mainly as a result of Mastercard's (MA) less than stellar earnings. However, long-term investors can be rest assured this is one of those names that will continue to do well.

--Faisal Laljee

Full Disclosure: I own PCLN , V, MA and AAPL, but my position can change anytime without notice.