Recently, Zacks.com users have been paying close attention to MasterCard (MA). This makes it worthwhile to examine what the stock has in store.
Mastercard has launched an initiative aimed at exploring the future of cryptocurrency payments. The company's Crypto Partner Program, announced Wednesday (March 11), brings together 85 different digital asset and payments companies, including high-profile players like Binance, Circle, Gemini, PayPal and Ripple.
Mastercard Incorporated (MA) Presents at Wolfe Research FinTech Forum Transcript
Payments giant Mastercard Incorporated MA has rarely looked cheap. For years, the company traded at a premium that seemed detached from traditional valuation metrics.
Mastercard (MA) is transforming from a payment network into a high-margin enterprise SaaS and cybersecurity provider, driving a fundamental shift in its revenue mix. Value-Added Services and Solutions (VASS) now comprise over 40% of revenue, growing at a 19.75% CAGR and significantly outpacing legacy payment network growth. MA's cybersecurity offerings, like Threat Intelligence, create sticky B2B SaaS revenue streams and high switching costs for global financial institutions.
MA expands its SoFi partnership to enable SoFiUSD stablecoin settlements across its global network, aiming to speed cross-border and B2B payments.
Mastercard is trading at one of its lowest valuation multiples in a decade, with a P/E of 31.7 and P/FCF of 29.4. MA continues to deliver double-digit revenue and earnings growth, with Q4/25 revenue up 17.6% and EPS up 24.2% year-over-year. Management expects high-end low double-digit net revenue growth in 2026, with value-added services outpacing core payment network revenue.
Mastercard earns a buy rating, as disruption risks from AI and alternative payments are outweighed by robust fundamentals and attractive valuation. MA's payment network and services continue to show strong growth, with Q4 network revenue up 9% and services up 22% in constant currency. Valuation is compelling: MA trades at a 24% discount to its average forward P/E, offering a margin of safety and potential for multiple expansion.
Mastercard Incorporated (MA) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Mastercard operates as a comprehensive payments platform, extending well beyond traditional credit card transactions. MA's value-added services segment, including cybersecurity and data monetization, represents a significant and often underappreciated growth driver. The company's valuation is among the lowest in the past decade, leaving plenty of upside.
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MA launches MetaMask Card nationwide, linking self-custody crypto wallets to 150M merchants while avoiding balance sheet risk and adds rewards tiers.