Mastercard Inc. (MA Quick QuoteMA - Free Report) is trading below its 50-day and 200-day simple moving average (SMA), signaling a bearish trend. The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first markers of an uptrend or downtrend.

This global payment solutions leader continues expanding into new customers and markets. The rapid adoption of digital and contactless payments is accelerating its transition to a fully digital model. Strategic acquisitions and partnerships are broadening its addressable market and creating additional revenue opportunities, strengthening the company’s long-term growth prospects. Yet, sustained high rebates and incentives given to merchants will keep putting pressure on the company’s net revenues.

Year to date, shares of MA have risen 2.6% against its industry’s decrease of 11.5% and the sector’s decline of 9.8%. The stock has, however, underperformed the Zacks S&P 500 composite’s gain of 19.3%.

MA vs Industry, Sector, S&P 500 YTD

Image Source: Zacks Investment Research

Shares of other payment processors, Visa (V Quick QuoteV - Free Report) and American Express (AXP Quick QuoteAXP - Free Report) , have gained 3.5% and 22.1%, respectively, year to date. 
While Visa is poised to benefit from expansion in cross-border volumes, rising transactions and investments in AI and stablecoin infrastructure, new product launches, strategic partnerships and a rebound in travel and entertainment spending should drive AXP.

The Case for MA

The ongoing shift toward digital and cashless payments acts as a catalyst for Mastercard’s growth. As consumers and businesses increasingly transition from cash to digital channels, the company is leveraging its global network, product innovation and technology-driven capabilities to capture expanding payment flows. Solid financial flexibility allows Mastercard to support organic investments while pursuing selective acquisitions that enhance long-term expansion.

Another key driver of Mastercard’s growth is its value-added services portfolio, spanning data analytics, cybersecurity and consulting. These offerings improve revenue stability and provide a buffer against fluctuations in transaction volumes by diversifying the company’s income streams.
Management anticipates continued healthy consumer and business spending. As a result, it expects fourth-quarter 2025 net revenues to grow at the high end of a low double-digit range and full-year 2025 net revenues to increase in the low-teens range on a currency-neutral basis, excluding acquisitions.

The company continues to invest in areas such as tokenization, cybersecurity, stablecoins, digital identity, open banking and real-time payments—capabilities that position it strongly in a fast-evolving competitive landscape. Mastercard’s expansion in emerging regions, particularly Southeast Asia and Latin America, fits well with its long-term objectives. These markets contain large unbanked populations and present substantial opportunities for digital inclusion and payment modernization.

Additionally, Mastercard is committing significant resources to AI, cybersecurity and fraud-prevention technologies, which enhance its value proposition and strengthen customer relationships. A solid cash position also supports share repurchases, dividend distributions and strategic deal-making. With $10.4 billion in cash and no short-term debt, Mastercard maintains strong financial flexibility and stability.

Yet, escalating operating expenses and higher rebates and incentives weigh on the upside. MA estimates adjusted operating expenses to grow at the high end of mid-teens in 2025.

Also, its leverage ratio (total debt to total equity) of 239.7% is poor compared with the industry’s average of 80.79%

Mastercard is Expensive

Mastercard is trading at a forward P/E ratio of 28.9X, well above the industry average of 20.16X.

Image Source: Zacks Investment Research

MA is also expensive when compared with Visa and American Express.

Mixed Analyst Sentiment for MA

The Zacks Consensus Estimate for 2025 earnings has moved 0.2% north but the same for 2026 has moved 0.1% south in the past 30 days.

Image Source: Zacks Investment Research

While the consensus estimate for Visa’s 2025 and 2026 earnings witnessed no movement, estimates for AXP witnessed northbound movement in the past 30 days.

While the Zacks Consensus Estimate of Mastercard’s 2025 and 2026 revenues suggests a 15.8% and 12.6% year-over-year increase, respectively, the same for 2025 and 2026 earnings suggests a 12.6% and 15.8% year-over-year increase, respectively. The expected long-term earnings growth rate is pegged at 15.5%, better than the industry average of 11.2%.

Parting Thoughts on MA Stock

Mastercard’s solid fundamentals, growing digital ecosystem and consistent earnings growth reinforce its standing as a global payments leader. Strong cross-border activity and value-added services support its long-term prospects.

Still, ongoing regulatory pressure, higher expenses and a premium valuation may limit near-term upside. Given these factors, a cautious wait-and-see stance is appropriate for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.