Mastercard: Finding Reasons For The Selloff (Rating Upgrade)

YR Research5.47K FollowersFollow5ShareSavePlay(7min)CommentsSummaryMastercard is upgraded to 'Buy' amid a 13% YTD decline and five years of underperformance.MA's fundamentals remain robust: 16.5% revenue CAGR, 19% operating income CAGR, and 21% EPS growth, with accelerating momentum.Underperformance is attributed to business mix shift, valuation reset, narrowing premium to Visa, and persistent disruption/regulation concerns.At 25x forward earnings (~1.5x PEG), MA offers an attractive risk-reward, with expectations of ~15% annual returns as fundamentals reassert.jbk_photography/iStock Editorial via Getty Images Mastercard (MA) shares are down 13% YTD, continuing a five-year trend of underperformance. This selloff comes at a time when fundamentals have shown no weakness whatsoever, leaving investors searching for an explanation. We'll make anThis article was written byYR Research5.47K FollowersFollowI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.Analyst’s Disclosure: I/we have a beneficial long position in the shares of V either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.