Why Mastercard Incorporated (MA) Is the Best Safe Stock to Buy According to Analysts?

We recently published a list of 10 Best Safe Stocks To Buy According to Analysts. In this article, we are going to take a look at where Mastercard Incorporated (NYSE:MA) stands against other best safe stocks to buy according to analysts.

Market Will End 2024 Positively, Strategist Says

Statistically, November and December tend to be great months for stocks. However, with the economic turmoil in question, will stocks end the year on a positive note? On November 30, Quincy Krosby, chief global strategist at LPL Financial, joined Market Domination on Yahoo Finance to discuss her market thesis. Krosby believes that the market will end the year in “positive territory,” assuming that no unexpected or headline events occur moving forward. She also added that portfolio managers will strive to report gains, and will most likely close books before the end of 2024.

Krosby revealed that the market is very “enthusiastic” about the new administration, despite serious concerns over tariffs. She shared that while 2024 has been a solid year for stocks, some moderation is expected in 2025. She also said that the number of earning revisions coming down for the year ahead is evidence of moderation, adding that if the Fed decides to withdraw its easing cycle plan or alter it, the market is going to be “pretty disappointed.”

She stated that in 2025, the market will have greater funding needs, reaching nearly $7.5-8 trillion, and greater uncertainty along with geopolitical risks. However, despite this, the market has been marching higher and navigating through these risks and is expected to continue doing so. Speaking about “waning business pricing power,” Krosby stated that while consumers have been spending, they are looking for “more bargains.” Companies have also been trying to beat tariffs and figure out which areas of the market are going to get more expensive.

Speaking of market uncertainty, Krosby believes how the market unfolds will be crucial and critical. Overall, she shared her bullish stance on industrials, especially names in the defense, building, and defense manufacturing industries. She also added that stocks in the communication sector, especially those with higher dividend offerings, particularly if the Fed easing cycle goes as planned, are going to perform better in the coming year.

While the future of the Fed cycle and inflationary pressures may be uncertain, some stocks have historically been safe to invest in. That said, let’s take a look at the 10 safe stocks to buy according to analysts.

Our Methodology

To come up with the 10 safe stocks to buy according to analysts we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10-year revenue growth rate for each stock and a solid analyst upside, of at least 8%. The 10 safe stocks to buy according to analysts are in ascending order of the analyst upside as of December 9, 2024. We also included the hedge fund sentiment of each stock.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Why Mastercard Incorporated (MA) is the Best Safe Stock to Buy According to Analysts?

A woman using a payment terminal at the checkout of a store showing payment products and solutions.

Mastercard Incorporated (NYSE:MA)

Analyst Upside as of December 9, 2024: 8%

10-Year Revenue Growth Rate: 11.5%

Number of Hedge Fund Holders: 131

Mastercard Incorporated (NYSE:MA) is a multinational payment services corporation in the United States that ranks 10th on our list of the safest stocks to buy according to analysts. It facilitates electronic funds transfers through branded debit cards and credit cards. The company provides financial services to large companies, small to medium-sized enterprises, banks, credit unions, and the public sector.

Mastercard Incorporated (NYSE:MA) aims to bring 1 billion people into the digital economy by 2025. To achieve such, the company launched several partnerships and products in the past few months. On November 12, the company unveiled a new platform, Mastercard Biz360, to help businesses streamline their operations using technology and digital tools. Previously, on November 5, the company launched Pay Local, a new service to help digital wallet providers find new ways to pay. At the moment, more than 35 million merchants accept these wallets, positioning the initiative as a success already.

In the third quarter of 2024, Mastercard Incorporated (NYSE:MA) increased its revenue by 13% and net income by 2% year-over-year. During the same quarter, the company saw a 10% increase in gross dollar volume and an 11% increase in purchase volume. Other than payment services, the company is also venturing into value-added services like data analytics, fraud prevention, and cybersecurity solutions, which posted an 18% increase in sales in the third quarter.

 Ithaka Group stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q3 2024 investor letter:

Mastercard Incorporated (NYSE:MA) is one of two leading companies (along with Visa, which we also own) that helps match information and funds between banks that have relationships with card-carrying consumers and banks that have relationships with merchants, thus ensuring payment transactions are reliable and secure. Since the company’s founding in 1966, Mastercard has benefi ted from the growth in personal consumption expenditure, the strong secular shift from cash and checks to credit and debit cards, and a highly profi table business model that generates high incremental operating margins and hence ample and growing free cash fl ow per share. During the third quarter Mastercard’s stock outperformed as an in-line earnings announcement and strong global credit growth helped pull the stock out of a six-month consolidation.”

Overall, MA ranks 10th on our list of best safe stocks to buy according to analysts. While we acknowledge the potential of MA to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.