5 Best American Stocks To Buy Heading Into 2023

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 137

Mastercard Incorporated (NYSE:MA) is a New York-based financial technology company providing transaction processing and other payment-related products and services in the United States and internationally. On October 27, Mastercard Incorporated (NYSE:MA) reported a Q3 non-GAAP EPS of $2.68 and a revenue of $5.8 billion, topping analysts’ estimates by $0.10 and $140 million, respectively. 

Mizuho analyst Dan Dolev on November 9 reiterated a Buy recommendation on Mastercard Incorporated (NYSE:MA) but lowered the price target on the shares to $380 from $385 following the Q3 results. The analyst raised 2022 estimates but trimmed outer-year expectations.

According to Insider Monkey’s Q2 data, 137 hedge funds were long Mastercard Incorporated (NYSE:MA), compared to 136 funds in the last quarter. Charles Akre’s Akre Capital Management is the leading position holder in the company, with 5.8 million shares worth $1.8 billion. 

Here is what L1 Capital International specifically said about Mastercard Incorporated (NYSE:MA) in its Q2 2022 investor letter:

“Growth in electronic payments, the continued shift away from cash and cheques, and the provision of additional services such as fraud identification and prevention continue to power Mastercard Incorporated (NYSE:MA)’s growth (Figure 14). In person cross-border transactions are recovering alongside normalization of travel.

Mastercard and Visa (we have invested in both) continue to dominate the electronic payments industry outside of China, utilizing their own multi-faceted networks as well as Government and third-party payments infrastructure to facilitate transactions. Another perfect example of a ‘Noah’s Ark’ industry structure.

Regulation, technological disruption and disintermediation, and geopolitical constraints are perennial issues for consideration, but Mastercard (and Visa) management have repeatedly demonstrated their ability to manage these issues…” (Click here to read the full text)