5 Best Bear Market Stocks to Buy According to Morgan Stanley

1. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 136

An American financial services company, Mastercard Incorporated (NYSE:MA) has evolved its business over the years. The company adopted blockchain technology and added digital payments to expand its payment-focused services. MA has gained 5.80% in the past six months, as of the market close of June 8.

Mastercard Incorporated (NYSE:MA) was the 10^th most famous stock among hedge funds at the end of March 2022, as 136 funds in Insider Monkey’s database held stakes in the company, compared with 144 in the previous quarter. These stakes hold a consolidated value of over $15.4 billion.

From the information technology sector, Morgan Stanley included Mastercard Incorporated (NYSE:MA) in its list of best bear market stocks, setting a $452 price target on the stock. In May, Goldman Sachs also initiated its coverage of the stock with a $460 price target and a Buy rating on the shares, appreciating the company’s Q1 earnings beat.

Mastercard Incorporated (NYSE:MA) maintains an 11-year track record of consistent dividend growth, with its 5-year dividend CAGR standing at 20%. The company pays a quarterly dividend of $0.49 per share, offering a dividend yield of 0.54%, as recorded on June 8.

Saturna Capital mentioned Mastercard Incorporated (NYSE:MA) in its Q4 2021 investor letter. Here is what the firm has to say:

“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”

You can also take a look at 12 Best Bear Market Stocks to Buy Now and 10 Best Financial Stocks that Pay Dividends

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