5 Under-the-Radar Stocks That Are on The Move

3. Mastercard Incorporated (NYSE:MA)

Upside Potential: 11.60%
Current Price as of July 20: $399.19
52 Week High: $404
Number of Hedge Fund Holders: 138

Increasing consumer spending is one factor that has made payment stocks some of the best bets as the US economy bounces back from the COVID-19 slowdown. Mastercard Incorporated (NYSE:MA) is one stock that stands out in the financial sector as it offers transaction processing and payment-related products and services internationally.

According to Ethridge of CIC Wealth, Mastercard Incorporated (NYSE:MA) is one company wedged in every transaction people make with credit and debit cards worldwide. The fact that the company takes a piece of the trillions of dollars’ worth of transactions that take place worldwide makes the stock one of the best plays in the financial sector.

Mastercard Incorporated (NYSE:MA) stock is up by about 13% year to date, trading near its 52-week high of $404 while showing signs of breaking out. With an average price target of $445.50, the stock has the potential to rally by 11.60% from current levels.

As of the first quarter of 2023, 138 hedge funds in Insider Monkey’s database held stakes in Mastercard Incorporated (NYSE:MA). The most prominent shareholder in Mastercard Incorporated (NYSE:MA) is Charles Akre’s Akre Capital Management, with 5.87 million shares valued at $2.13 billion.

In the investor letter for the second quarter of 2023, LVS Advisory provided its perspective on Mastercard Incorporated (NYSE: MA) with the following remark:

“We have owned Mastercard Incorporated (NYSE:MA) on and off since inception. We re-initiated the position in summer 2022 during the broader market sell-off. The stock traded off to an attractive valuation and we believed the tailwinds from a reopening of international travel still had legs. This was a small portfolio position and the stock has appreciated in the year we have owned it. The stock’s valuation is once again rich and the tailwinds from international travel and consumer spending appear to be tapering. We sold the position because we believe other opportunities within our existing portfolio will generate superior returns.”