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Purchase, New York-based Mastercard Incorporated (MA) provides transaction processing and other payment-related products and services. Valued at $534 billion by market cap, Mastercard offers a range of integrated products and value-added services to millions of account holders, institutions, businesses, governments, and other organizations.
Companies worth $200 billion or more are generally described as "mega-cap stocks." Mastercard fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the fintech and digital payments industry. The company holds an extensive global foothold and operates in more than 210 countries and territories across the globe.
Mastercard touched its all-time high of $601.77 on Aug. 22 and is currently trading 1.9% below that peak. MA stock has observed a 2.5% uptick over the past three months, notably lagging behind the Nasdaq Composite’s ($NASX) 13.6% surge during the same time frame.
Over the longer term, MA stock prices have soared 25.2% over the past 52 weeks, outpacing Nasdaq’s 23.6% surge during the same time frame.
To confirm the uptrend, Mastercard’s stock has traded mostly above its 200-day moving average over the past year, with some fluctuations, and has consistently remained above its 50-day moving average since early August.
Mastercard’s stock prices gained 1.3% in the trading session following the release of its robust Q2 results on Jul. 31. The company has continued to observe a solid momentum in its business. Driven by the constant growth in its payment network and value-added services and solutions, Mastercard’s revenues for the quarter surged 16.8% year-over-year to $8.1 billion, exceeding the Street expectations by 1.9%. Meanwhile, its adjusted net income grew 13% year-over-year to $3.8 billion, and its adjusted EPS of $4.15 surpassed the consensus estimates by 2.5%.
Despite its solid performance on Wall Street, MA stock has underperformed its peer, Visa Inc.’s (V) 30% surge over the past year.
MA stock maintains a consensus “Strong Buy” rating among the 38 analysts covering it. Mastercard’s mean price target of $649.57 represents a 10% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
