Mastercard Stock Climbs 8.4% On A 7-Day Winning Streak
Shares of Mastercard (MA) have closed higher in each of the last 7 sessions, a cumulative gain of 8.4%. That added about $40.5 billion to the company’s market value, which now stands at about $524.9 billion. The stock closed at $595.09 on Monday, October 12, 0.6% below its 52-week high of $598.95 and 26.6% above its low of $470.05.
The Streak Next To The S&P 500
Returns for MA and the S&P 500 over the streak and the periods around it, all ending Monday, October 12 and including dividends:
| Return Period | MA | S&P 500 |
|---|---|---|
| 1 Day | 1.0% | -0.1% |
| 7 Days (Current Streak) | 8.4% | 1.9% |
| 1 Month (21 Trading Days) | 4.7% | 2.0% |
| 3 Months (63 Trading Days) | 10.8% | 3.8% |
| Year To Date | 4.9% | 15.1% |
| 1 Year (252 Trading Days) | 6.1% | 17.3% |
Is This Move About Mastercard Or The Market?
Over the same 7 trading days, the S&P 500 returned +1.9% including dividends, so the run is mostly Mastercard’s own story rather than the market’s. 10 other S&P 500 stocks are currently on winning streaks of 7 days or longer. Over the past three months the stock is up 10.8%, a window that includes the streak; over the other 56 sessions of that window it was up 2.2%.
Is The Business Keeping Up With The Stock?
On the fundamentals, revenue grew 16.0% over the last twelve months, against a median of 10.2% for S&P 500 Financials stocks; its operating margin is 59.8%, versus a median of 26.9%; and the stock trades at 32.3 times trailing earnings against a median of 13.9. The numbers make the run harder to justify: a multiple well above the median. At this price, the stock is asking a lot of the business.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
For anyone who would rather back the theme than one company, a financials ETF like XLF holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.