8 Best Stocks To Buy For Beginners Right Now

6. Mastercard Inc. (NYSE:MA)

10-Year Revenue CAGR: 11.50%

Number of Hedge Fund Holders: 142

Mastercard Inc. (NYSE:MA) is a payment card services corporation that offers a range of payment transaction processing and other related payment services. It operates a global payments network that connects consumers, merchants, and financial institutions. Its products and services include credit cards, debit cards, prepaid cards, and mobile payments. It also offers a range of services to financial institutions, such as processing payments, data analytics, and risk management.

The company has reorganized its structure into 3 key areas: Core Payments, Commercial and New Payment Flows, and Services. The company aims to capitalize on growth opportunities beyond traditional consumer card payments. In Q2 2024, it reported strong financial results with a revenue increase of 11.04%, driven by 7% growth in payment networks, and an 18% increase in value-added services and solutions. Healthy consumer spending and robust cross-border volume growth of 17% contributed to this positive performance.

Mastercard Inc. (NYSE:MA) controls 24% of the US credit card market. It expanded its travel partnerships in Q2, including a co-brand agreement with Ethiopian Airlines. It also signed multi-year contracts with Expedia and Wells Fargo to launch new co-brand cards with travel benefits. Switched transactions on the company’s network increased by 11% in Q2, down from 12% in Q1. It’s leveraging AI to enhance its services, particularly in fraud detection and cybersecurity.

The company is a strong investment choice. As a leading payments company with a proven track record, its diversified business model and innovative approach position it well to capitalize on the growing payments industry, using its well-known brands including Mastercard, Maestro, and Cirrus. Mastercard Inc.’s (NYSE:MA) continued focus on growth, coupled with its strong brand recognition and global presence, makes it a compelling investment option.

L1 Capital International Fund stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q2 2024 investor letter:

“The share prices of Mastercard Incorporated (NYSE:MA) and Visa, both long term Fund investments, have both drifted down over recent months. There have been no dramatic developments, but there has been a general slight softening in the rate of growth of consumer spending in the U.S. and globally, a court decision rejecting Mastercard and Visa’s proposed settlement of a long-lasting dispute with U.S. merchants as well as other modest adverse regulatory developments. We continue to view Mastercard and Visa as two of the highest quality businesses in the world, and both are well placed to continue to deliver attractive, risk adjusted returns to shareholders over time.”