Master Card Stock Investment Opportunities and Risks

Mastercard's stock has a market capitalization of over $300 billion, making it one of the largest publicly traded companies in the world.

Investors can buy Mastercard stock through various online brokerages, such as Fidelity, Charles Schwab, and Robinhood.

Mastercard's revenue has consistently grown over the past decade, with a compound annual growth rate of 10%.

Investing in Mastercard stock comes with risks, including market volatility and competition from other payment companies.

Mastercard's net income has also been steadily increasing, reaching $7.6 billion in 2020.

The stock has historically been less volatile than other fintech companies, but it's still subject to market fluctuations.

Mastercard Inc. is currently overvalued by 37% based on its intrinsic value of $356.07 USD, which is lower than its current market price of $561.27 USD.

The company's intrinsic value is calculated by averaging its Discounted Cash Flow (DCF) and Relative values. Unfortunately, historical valuation for Mastercard is not possible due to data limitations.

Mastercard's growth metrics are impressive, with earnings growing 14.36% per year over the past five years, outpacing the Credit Services industry average of 12.02%.

For your interest: What Are Value Stocks vs Growth Stocks

Valuation is a crucial aspect of investment analysis, and it's essential to understand the various metrics that help determine a stock's value.

The table below shows the valuation metrics for Mastercard Inc (MA), American Express (AXP), and Discover Financial Services (DFS).

Looking at the normalized Price/Earnings ratio, Mastercard Inc has a value of 38.42, while American Express and Discover Financial Services have values of 22.18 and 10.29, respectively.

MA is the ticker symbol for Mastercard stock, which has a current average 1-year price target of 627.02 USD.

To give you a better idea of the potential price range, Wall Street analysts have forecasted a low of 470.76 USD and a high of 724.5 USD.

This range can help you make a more informed decision about whether to invest in Mastercard stock, especially when considering the company's underlying business fundamentals and recent stock price movements.

Here's a summary of the price targets in a table:

Mastercard has unveiled the Middle Market Accelerator, a tool designed to help financial providers service their middle-market customers. This accelerator combines Mastercard's digital payment capabilities with its expertise in customer acquisition and retention.

The Middle Market Accelerator aims to support middle-market companies in their growth and development. Mastercard's initiative is a strategic move to tap into this underserved market.

Middle-market companies often face unique challenges in accessing financial services, making it difficult for them to scale their businesses. This accelerator aims to bridge this gap by providing tailored solutions.

By leveraging Mastercard's digital payment capabilities, middle-market companies can streamline their payment processes and reduce costs. This can help them allocate resources more efficiently and focus on their core business operations.

The Middle Market Accelerator is a significant step forward in Mastercard's efforts to support middle-market companies. This initiative demonstrates the company's commitment to innovation and customer-centricity.

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Mastercard's financial performance is a story of steady growth and profitability. In 2024, the company's revenue reached $28.17 billion, a 12.23% increase from the previous year's $25.10 billion.

Mastercard's earnings also saw a significant boost, rising to $12.87 billion in 2024, a 15.00% increase from the previous year. This growth in earnings is a testament to the company's ability to adapt to changing market conditions and capitalize on opportunities.

The company's profitability score is 82/100, indicating a high level of profitability. This score is based on a comprehensive analysis of Mastercard's financial performance and is a key metric for investors.

Here are the key financial metrics for Mastercard:

These numbers demonstrate Mastercard's commitment to delivering strong financial performance and its ability to drive growth in a competitive market.

To make informed investment decisions about Mastercard stock, it's essential to research their underlying business fundamentals. This can be done through various stock research tools.

You can evaluate Mastercard stock by looking at its ticker symbol, MA, and considering factors such as its current market price, analyst opinions, and recent stock price movements. Our stock research tools can help you decide if MA is a good stock to buy.

To get started, you'll need to decide where to buy Mastercard stock, and we've tested dozens of stock brokerages and apps to help you choose the best option.

To make informed investment decisions, it's essential to research and understand the company you're interested in. You can start by deciding where to buy the stock, as this will give you access to the NYSE market.

You'll need to choose an online brokerage account to buy Mastercard stock, such as eToro, which is our favorite option.

To buy Mastercard stock, you'll need to open a brokerage account with a reputable online brokerage. This will allow you to access the NYSE market and buy MA stock.

Before making a purchase, it's crucial to evaluate Mastercard stock and understand its underlying business fundamentals. This will help you decide if MA is a good stock to buy.

To evaluate Mastercard stock, you can use stock research tools, such as those found on WallStreetZen, which can help you perform in-depth fundamental analysis in minutes instead of hours.

Here are the 6 steps to buy Mastercard stock:

By following these steps and doing your research, you can make an informed investment decision and potentially reap the rewards of investing in Mastercard stock.

Visa reported better-than-expected quarterly earnings, which is a positive sign for investors.

The company's performance is likely to be driven by its strong position in the global payment technology market.

Visa processes credit card payments and other financial transactions, which is a significant source of revenue.

Investors who are considering buying Visa stock should take note of the company's recent earnings report.

The report showed that Visa's quarterly earnings exceeded expectations, which is a good sign for the company's financial health.

Visa's strong earnings are likely to be driven by its growing presence in the global payment technology market.

Investors should consider the company's financial performance and market position before making a decision.

Visa's ability to process credit card payments and other financial transactions is a key driver of its revenue.

Investors who are considering selling Visa stock should think carefully about the company's recent earnings report.

Visa's quarterly earnings exceeded expectations, which is a positive sign for the company's financial health.

Investors should consider holding onto Visa stock if they believe the company's strong earnings will continue in the future.

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Mastercard is a global payments technology company that operates one of the world's largest payment networks.

Mastercard was founded in 1966 by a group of banks, including Chemical Bank, Bank of California, and Wells Fargo.

The company is headquartered in Purchase, New York.

Mastercard's stock is listed on the New York Stock Exchange under the ticker symbol MA.

Mastercard Incorporated has a Growth Score of 89, which is considered Very Strong. This score is based on the company's consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

The Growth Score is computed by adding the percentile ranks for each of these three individual components and ranking the sum against the entire stock universe. This process creates an equal distribution of grades, where the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, and those in the top 20% receive A grades, which are considered Very Strong.

Here's a breakdown of Mastercard's sales growth metrics:

Mastercard's sales growth has been impressive, with a 5-year annual growth rate of 10.8%, which is significantly higher than the sector median of 6.1%. Additionally, the company has consistently increased its sales year-over-year for the past 5 years, with 4 out of 5 years showing an increase.

The company's strong sales growth and consistent profitability are key factors that contribute to its Very Strong Growth Score.

According to 26 analysts, the average rating for MA stock is "Buy."

Out of 21 sell-side analysts who track MA, the consensus analyst rating is a Strong Buy.

The 12-month stock price forecast is $609.12, which is an increase of 8.53% from the latest price.

Analyst forecasts are not recommendations, nor are they financial advice.

Mastercard Incorporated's market capitalization is a staggering $512.9 billion as of February 26, 2025, placing it in the 100th percentile of companies in the Financial Services industry.

This massive market cap is likely a result of the company's strong financial performance, with a trailing 12-month revenue of $28.2 billion and a 45.7% profit margin.

The company's price-earnings ratio is 40.4, which is a relatively high ratio, suggesting that investors are willing to pay a premium for Mastercard Incorporated's stock.

Related reading: Compared to Growth Stocks Value Stocks' Price-earnings Ratio Is Typically

Mastercard Incorporated is a financial powerhouse, with a market capitalization of $512.9 billion, placing it in the 100th percentile of companies in the Financial Services industry.

Their price-earnings ratio is 40.4, indicating a relatively high valuation.

The company's trailing 12-month revenue is $28.2 billion, with an impressive 45.7% profit margin.

Year-over-year quarterly sales growth has been strong, reaching 14.4% most recently.

Analysts expect adjusted earnings to reach $15.901 per share for the current fiscal year.

Mastercard's Board of Directors has declared a quarterly cash dividend of 76 cents per share. This decision was made by the Board and is a significant development for the company's investors.

The dividend is a quarterly cash payment, meaning it will be paid out to shareholders on a regular basis. It's a common practice for companies to distribute a portion of their profits to their shareholders in the form of dividends.

The dividend amount of 76 cents per share is a specific figure that was announced by Mastercard. This amount may be subject to change in the future, but for now, it's an important detail for investors to know.

UPS hit a 52-week low after announcing it will cut business with Amazon by 50%. This significant move has likely had a substantial impact on the company's revenue.

UPS had a substantial business relationship with Amazon, so this cut is a big deal. The exact terms of the deal and how it will be affected are not specified.

Amazon's business is a significant part of UPS's operations, so this loss will be felt. The company's ability to adapt to this change will be crucial to its success.

Mastercard hit an all-time high after posting an earnings beat. This is a notable achievement for the company.