With a market cap of $523.8 billion, Mastercard Incorporated (MA) is a technology company that provides transaction processing and other payment-related products and services in the United States and internationally. Founded in 1966, the Purchase, New York-based company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations.

Companies worth $200 billion or more are generally described as "mega-cap stocks." MA fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the financial services sector. As a key player in the global payments industry, Mastercard benefits from significant scale, trust, and infrastructure that are difficult to replicate. Its asset-light business model drives strong margins and cash flow, while continuous innovation in digital payments, cybersecurity, and AI-based fraud prevention enhances its value proposition.

The credit services giant's stock dropped nearly 2.1% from its 52-week high of $588.45. MA’s stock has declined marginally in the past three months, surpassing the S&P 500 Index’s ($SPX) 1.1% decrease.

In the longer term, MA has grown over 9.4% on a YTD basis, whereas SPX rose marginally. Moreover, shares of MA soared 29.4% over the past 52 weeks, outperforming the SPX's nearly 11% rise over the same time frame.

To confirm its upturn, MA stock has been trading above its 50-day and its 200-day moving average since late April.

Despite delivering better-than-expected results, Mastercard’s stock prices observed a marginal dip after the release of its Q1 results on May 1. Driven by the positive impact of acquisitions and growth in the payment network and its value-added services & solutions, the company’s revenue surged 14.2% year-over-year to $7.3 billion, exceeding the Street’s expectations. Meanwhile, the company’s adjusted EPS increased 12.7% year-over-year to $3.73, surpassing the consensus estimates by 4.5%.

MA’s rival Visa Inc. (V) has declined marginally over the past three months but has grown 32.8% over the past year, outperforming the stock.

Among the 38 analysts covering the MA stock, the consensus rating is a “Strong Buy.” Its mean price target of $624.64 suggests an 8.5% upside potential from current price levels.