American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

American Express Company демонстрирует сильные результаты по ряду ключевых финансовых показателей, включая высокие значения ROE и ROA, что указывает на эффективность использования капитала. Тем не менее, компания имеет высокие мультипликаторы, такие как P/E и P/B, значительно превышающие медианные значения в отрасли, что может указывать на переоцененность. Долговая нагрузка также остается выше медианы, что создает дополнительные риски для инвесторов. Несмотря на это, рост выручки и чистой прибыли на протяжении последних лет говорит о стабильности бизнеса. Дивидендная доходность остается на умеренном уровне, что может привлечь инвесторов, ищущих доход. В целом, несмотря на некоторые негативные аспекты, такие как высокая задолженность и мультипликаторы, сильные операционные результаты и устойчивый рост доходов поддерживают положительный взгляд на компанию.

American Express Company

Key Points
Younger consumers are driving significant new card sign-ups for American Express.
Management is targeting mid-teens earnings per share growth over the long run.
The market is presenting investors with a more attractive entry point.
Investors have cheered for the success of American Express (NYSE: AXP). In the past five years, shares in the premium credit card company have produced a total return of 124% (as of March 10), lifted by steady financial gains. However, the market has tanked the share price 18% just this year.
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The worries for American Express seem overblown right now, though. The best investors consider opportunities not based on the latest news but with a long-term mindset. Does this stock have what it takes to be a millionaire maker?
American Express operates from a position of strength
American Express had a strong showing in 2025. Revenue (net of interest expense) jumped 10% year over year to $72.2 billion. This growth occurred at a time when the economy is in a state of heightened uncertainty. Payment volume rose by 7% to $1.7 trillion, showcasing the scale that American Express has achieved.
Younger consumers are flocking to the company's offerings. "As of Q4, millennial and Gen Z customers now make up the largest share of U.S. consumer spending, and they remain the fastest-growing cohorts," CFO Christophe Le Caillec said on the Q4 2025 earnings call.
This is undoubtedly an encouraging trend to pay attention to. When it comes to winning over this valuable cohort, American Express is competing effectively not only against its traditional peers but also with more nimble fintech enterprises. Younger consumers naturally have a longer lifetime value, so starting that relationship early on is important for the business.
The company registered diluted earnings per share of 10% in 2025. And over the long term, the leadership team is targeting a mid-teens growth rate. American Express will lean on its strong brand presence and ability to increase payment volume, the number of active cards, and card fees to drive ongoing success.
Investors can capture a better valuation
It's clear that American Express is a high-quality business. That should put it on your radar as a possible portfolio addition.
Even better is the current offer from the market, which makes now a potentially worthwhile time to scoop up shares. The stock trades at a forward price-to-earnings ratio of 17.5. I don't view this as being an obvious bargain opportunity. However, if you've been waiting on the sidelines for a compelling entry point, now is your chance to make a move.
But just because American Express looks attractive at the current price doesn't mean that this is a millionaire-making financial stock. To fall into this bucket, there has to be a possibility that the shares can skyrocket 50-fold or 100-fold in the future. That's not going to happen with this business.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is American Express Stock a Millionaire Maker?

Key Points
American Express is a cornerstone of Berkshire's portfolio, representing about 15% of its total equity holdings.
Alphabet's cloud computing business is growing rapidly and driving significant expansion in operating income.
One of the two stocks is a clear winner when comparing the two Berkshire Hathaway holdings.
When Warren Buffett stepped down as CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) at the end of 2025, he left behind an equity portfolio packed with durable, cash-generating businesses.
But there were some surprising shifts to the portfolio before Buffett left. While the conglomerate is famous for its long-held, massive stakes in consumer brands and financial institutions, the portfolio has also slowly evolved to include dominant technology companies.
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Two notable holdings that highlight this mix of old and new are American Express (NYSE: AXP) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL).
American Express is a legendary, decades-old Buffett bet that has compounded capital for years.
Alphabet, on the other hand, is a more recent addition to the portfolio. And because the purchase occurred before Buffett stepped down, it carries notable significance for investors as one of the last meaningful portfolio additions under his leadership.
With both stocks earning a spot in the Oracle of Omaha's final portfolio, investors might wonder how they stack up against each other.
When comparing the two, I think one is a better buy.
American Express
It's hard to overstate just how important American Express is to Berkshire Hathaway.
When Buffett stepped down as CEO at the end of 2025, the integrated payments company stood as the conglomerate's second-largest equity position.
With the position valued at more than $45 billion as of this writing, American Express accounts for about 15% of Berkshire's total equity portfolio (assuming Berkshire still owns the same number of shares it held at the end of Q4).
The bull case for the stock is built on the company's powerful brand, a highly affluent customer base, a closed-loop payments network that captures value on both sides of a transaction, and net interest income from lending.
Highlighting the franchise's robust momentum lately, American Express reported fourth-quarter 2025 revenue of $19.0 billion, up 10% year over year. For the full year, the company posted a record $72.2 billion in revenue.
One of the company's secret sauces is its high-fee cards that come packed with perks for its members; American Express generated a record $10 billion in net card fees in 2025, marking its 30th consecutive quarter of double-digit card fee growth.
But there's a reason the stock trades at what might, on the surface, seem like a cheap price-to-earnings ratio multiple of 20.
Unlike pure-play payments networks (e.g., Visa and Mastercard), which simply collect a fee for routing transactions, American Express is also a lender. It issues credit directly to its cardholders. This gives the company a liability-sensitive balance sheet. In a severe economic downturn, American Express is exposed to credit risk and loan defaults.
This dynamic is why the stock typically commands a lower multiple than companies with similar growth profiles but in different industries.
At a valuation like this, American Express looks reasonably priced for a high-quality financial institution. The multiple accurately reflects the inherent cyclicality and balance-sheet risk of the lending business.
Alphabet
Though Alphabet accounted for just under 2% of Berkshire's total equity holdings as of the conglomerate's last public portfolio update, the tech stock shouldn't be underestimated.
Alphabet's business model looks quite different, and its growth trajectory is notably steeper.
The tech giant recently reported a massive fourth quarter for 2025, with total revenue surging 18% year over year to $113.8 billion.
The company's core Google Services segment, which houses its dominant search engine and YouTube, continues to deliver steady results, with revenue rising 14% year over year to $95.9 billion.
But the real catalyst for the company these days is its fast-growing cloud computing business.
Alphabet's Google Cloud segment saw revenue surge 48% year over year in Q4 to $17.7 billion.
Even better, this top-line growth is translating into massive profitability gains. Net income across the entire business jumped 30% year over year in Q4 -- and earnings per share rose 31% to $2.82.
This combination of a highly profitable core advertising engine and a booming enterprise cloud business gives Alphabet a remarkably durable financial profile.
Even more, the company's aggressive investment posture suggests that management expects strong growth to persist or even accelerate. To support the massive demand it's seeing for artificial intelligence (AI) compute, Alphabet expects to spend an enormous $175 billion to $185 billion on capital expenditures in 2026.
And the company's balance sheet is a fortress, packed with about $127 billion in cash and marketable securities -- and completely free of the lending liabilities that burden financial institutions like American Express.
Of course, investors have to pay up for this quality. Alphabet's price-to-earnings ratio of about 28 as of this writing is significantly higher than what investors pay for American Express.
But at that valuation, investors are paying for broad-based double-digit growth across almost every major segment of a highly diversified tech giant.
At 28 times earnings, the valuation assumes Alphabet's cloud margins will keep expanding, and its core services will remain resilient. And given the company's recent execution, that is arguably a very reasonable expectation.
The better buy
Both American Express and Alphabet are exceptional businesses that have rightfully earned their places in Berkshire Hathaway's portfolio.
But when comparing the two today, Alphabet looks like the clear winner.
American Express's multiple is constrained by the reality of its liability-sensitive balance sheet and its inherent exposure to consumer credit risk. Alphabet, meanwhile, is delivering broad-based, double-digit top-line growth while aggressively scaling its cloud computing business. Of course, there are risks, including the possibility that Alphabet's capital expenditures do not yield an attractive long-term return. But even with Alphabet's risks, the stock still looks attractive.
For investors looking for a resilient compounder to buy and hold for the next decade, Alphabet may be the more compelling choice
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 14, 2026.
American Express is an advertising partner of Motley Fool Money. Daniel Sparks and his clients have positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alphabet vs. American Express: Which Warren Buffett Stock Is a Better Buy?

In the latest trading session, American Express (AXP) closed at $301.89, marking a -1.34% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.52%. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 1.78%.
Prior to today's trading, shares of the credit card issuer and global payments company had lost 13.57% lagged the Finance sector's loss of 5.37% and the S&P 500's loss of 2.25%.
Market participants will be closely following the financial results of American Express in its upcoming release. The company plans to announce its earnings on April 23, 2026. In that report, analysts expect American Express to post earnings of $3.97 per share. This would mark year-over-year growth of 9.07%. Meanwhile, our latest consensus estimate is calling for revenue of $18.64 billion, up 9.85% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.5 per share and revenue of $78.73 billion. These totals would mark changes of +13.78% and +9.01%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. American Express currently has a Zacks Rank of #3 (Hold).
Looking at valuation, American Express is presently trading at a Forward P/E ratio of 17.48. This indicates a premium in contrast to its industry's Forward P/E of 10.38.
Investors should also note that AXP has a PEG ratio of 1.3 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 0.81 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 145, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Express (AXP) Stock Moves -1.34%: What You Should Know

Visa Inc.’s V latest move into stablecoins signals how the payments giant is preparing for a future where digital currencies could reshape global transactions. In early March, Visa and Bridge, which is a stablecoin infrastructure platform owned by Stripe, announced a major expansion of their global card issuance partnership. The initiative allows fintech developers to issue stablecoin-linked Visa cards, meaning crypto wallets can still rely on Visa’s network to spend funds.
Examples include crypto platforms like Phantom and MetaMask, enabling users to spend stablecoins via cards. The collaboration plans to expand stablecoin-linked cards from 18 countries to more than 100 countries and grow its footprint in Europe, Asia Pacific, Africa and the Middle East by 2026-end. This deal ensures that stablecoins don’t replace Visa; they run on Visa.
At first glance, the collaboration may look like another crypto expansion, but strategically, it seems more about defense and control of payment flows. Stablecoins allow people to send money directly on blockchain networks without intermediaries. If that model scales, transactions could bypass traditional payment networks like Visa and Mastercard Incorporated MA. By integrating stablecoin capabilities with its card infrastructure, Visa is positioning its network to support these emerging payment flows rather than remain separate from them, which expands Visa’s addressable ecosystem.
The partnership also broadens the range of companies that can build payment products on Visa’s network. In addition to banks, fintech developers and digital wallet providers will be able to launch card programs that connect stablecoin balances to Visa’s merchant acceptance network. That network remains one of Visa’s strongest advantages, with more than 175 million merchant locations worldwide. It is far easier for a wallet or fintech to issue a Visa-linked card than to convince millions of merchants to accept a new payment method.
Moreover, cross-border payments are one of Visa’s most profitable segments. Stablecoins are widely used for remittances, international transfers and cross-border commerce. By integrating them into its infrastructure, Visa is expected to accelerate settlement, reduce FX friction and keep cross-border transactions on its network instead of losing that flow to blockchain-only payment rails. This converts stablecoins from a competitive threat into a new transaction rail for Visa. This way, Visa is future-proofing its operations.
Other Growth Drivers
The continued expansion of Visa’s Value-Added Services (VAS) segment remains a major tailwind. VAS revenues surged 28% in constant dollars to $3.2 billion in the fiscal first quarter of 2026, driven by rising demand for advisory, fraud prevention, risk management and marketing solutions. With the FIFA World Cup and the Olympic Games approaching, marketing and analytics services are positioned for further acceleration, helping the company diversify its revenues and lift margin quality.
Visa’s transaction-based model continues to insulate results from fluctuations in specific spending categories. Whether consumers spend on travel, retail, dining or digital services, Visa’s network captures value across the spectrum. This structural advantage provides earnings stability even amid shifting economic conditions. In the fiscal first quarter, processed transactions grew 9% year over year to 69.4 billion.
Visa continues to pair growth with capital returns. During the quarter, the company returned $5.1 billion to shareholders, including $3.8 billion in buybacks and $1.3 billion in dividends. As of Dec. 31, $21.1 billion remained under its repurchase authorization. Its dividend yield of 0.87% exceeds Mastercard’s 0.69% and the industry average of 0.81%. Meanwhile, another peer, American Express Company AXP, boasts a dividend yield of 1.07%.
Zacks Estimates Signal Steady Growth
The Zacks Consensus Estimate for Visa’s fiscal 2026 and fiscal 2027 EPS implies an 11.9% and 13.3% uptick, respectively, on a year-over-year basis. Similarly, the consensus mark for fiscal 2026 and fiscal 2027 revenues suggests an 11.3% and 10.3% increase, respectively.
The company beat earnings estimates in each of the past four quarters, with an average surprise of 2.1%.
Visa Inc. Price, Consensus and EPS Surprise
Price Performance & Valuation
Over the year-to-date period, Visa shares declined 11.9%, underperforming the industry’s 10.6% drop and the S&P 500’s 1.1% fall. Meanwhile, Mastercard slipped 11.7%, while American Express fell 17.3%.
YTD Price Performance - V, MA, AXP, Industry & S&P 500
Image Source: Zacks Investment Research
Visa’s valuation remains above the industry average, but that has been the case for the most part of recent history. The stock is trading at 22.71X forward price/earnings versus its five-year median of 26.26X and the industry average of 18.12X.
Image Source: Zacks Investment Research
Meanwhile, Mastercard and American Express are currently trading at 25.23X and 17X, respectively.
Key Risks to Monitor
Despite its strengths, Visa faces a number of challenges. One potential risk stems from the possibility that large retailers or technology companies could introduce their own stablecoins. Firms such as Walmart and Amazon are reportedly experimenting with such alternative payment ecosystems, which over time could redirect a portion of transaction flows away from traditional card networks. While such developments remain uncertain, the rapid pace of innovation in digital payments makes this an area worth watching.
Regulatory scrutiny also remains a key concern. In the United States, the Department of Justice has accused Visa and Mastercard of using their market dominance to sustain elevated merchant fees. Ongoing litigation and settlement discussions continue to create uncertainty around long-term pricing power. Meanwhile, the proposed Credit Card Competition Act could alter card-routing rules, potentially affecting payment network economics.
Regulatory developments in Europe add another layer of pressure. In June 2025, the Competition Appeal Tribunal in London ruled that Visa and Mastercard’s multilateral interchange fees breached European competition law. The U.K. Payment Systems Regulator is expected to introduce fee caps, which could limit revenue growth in the region. Moreover, several U.K. banks are exploring a domestic payment alternative to reduce reliance on U.S. card networks.
Bottom Line
While Visa continues to benefit from strong network economics, expanding value-added services and steady transaction growth, evolving competitive dynamics and regulatory scrutiny warrant a balanced view. The company’s push into stablecoin-linked cards highlights its efforts to adapt to emerging payment technologies while protecting its core network advantage.
However, uncertainties around regulation and potential alternative payment systems may weigh on sentiment. With solid fundamentals but a few risks to monitor, Visa currently carries a Zacks Rank #3 (Hold), suggesting investors may await clearer catalysts. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Visa's Stablecoin Play Intensifies: Can it Future-Proof Its Network?

Mastercard Incorporated MA is ramping up its efforts in the world of artificial intelligence with the introduction of Virtual C-Suite, a cutting-edge AI framework designed to provide small businesses with executive-level insights. The initiative begins with a Virtual CFO, the first in a lineup of AI-powered digital executives aimed at helping entrepreneurs make smarter financial and operational decisions.
The concept builds on Mastercard’s broader agentic AI strategy, which focuses on turning payment data into actionable business intelligence. By leveraging information gathered from its extensive global payments network, where more than 175 billion transactions took place in 2025, the platform can merge macro-level trends with a business’s specific financial activities. The goal is to identify risks, highlight growth opportunities and recommend next steps, all within the tools that small businesses already use.
For small and medium enterprises, which often operate with lean teams and limited access to specialized expertise, the Virtual C-Suite helps bridge a long-standing resource gap. By integrating AI agents into accounting platforms, banking apps and business software, this system constantly monitors performance, identifies any irregularities and offers strategies to enhance cash flow, streamline payments and improve working capital management.
The Virtual CFO will debut via financial institutions and software partners later this year, with more AI executive roles planned. If successful, Mastercard could evolve beyond payments into a data-driven platform for small businesses, leveraging transaction data and expanding value-added services to support long-term growth.
How Are Competitors Faring?
Some of MA’s competitors in the fintech space include Visa Inc. V and American Express Company AXP.
Visa is accelerating its agentic commerce strategy through Visa Intelligent Commerce, enabling AI agents to complete purchases securely. With pilots alongside partners like DBS Bank and a growing ecosystem of collaborators, Visa is positioning its payment network as infrastructure for AI-driven digital commerce.
American Express is scaling generative AI across its Digital Labs to enhance customer insights, services and business tools. AXP is leaning into the rapid adoption of AI among small businesses, positioning its platform to deliver data-driven financial and operational support.
Mastercard’s Price Performance, Valuation & Estimates
Over the past year, MA’s shares have declined 3.9% compared with the industry’s fall of 17.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 25.23, above the industry average of 18.12. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 14% growth from the year-ago period.
Image Source: Zacks Investment Research
Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Mastercard's Virtual C-Suite Brings AI-Powered CFO to Small Firms

For Immediate Release
Chicago, IL – March 12, 2026 – Zacks Equity Research shares Sterling Infrastructure, Inc. (STRL) as the Bull of the Day and Griffon Corporation’s GFF as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Visa Inc. V, Mastercard Inc. MA and American Express Co. AXP.
Here is a synopsis of all three stocks:
AI data center infrastructure stock Sterling Infrastructure, Inc. soared 1,700% in the last five years, outpacing artificial intelligence powerhouse Nvidia’s 1,340% and blowing away the rest of the Magnificent 7.
The U.S. infrastructure company, which specializes in site development and mission-critical electrical services, is riding massive growth trends across the AI data center boom, tech-focused reshoring such as semiconductor fabrication, e-commerce distribution expansion, and beyond.
Sterling Infrastructure is positioned to benefit from these critical megatrends, which are driving the U.S. economy, for years to come. STRL more than quadrupled its earnings between 2020 and 2025 and doubled its revenue.
The AI data center infrastructure company posted an impressive beat-and-raise Q4 report in late February that helps Sterling Infrastructure land a Zacks Rank #1 (Strong Buy).
STRL is projected to grow its revenue and earnings by 25% in 2026. Plus, STRL stock found some support at some key technical ranges recently after its post-earnings pullback.
All in, investors looking for an infrastructure stock that provides long-term upside exposure to AI data centers, reshoring, e-commerce, and other critical economic trends should consider buying Sterling Infrastructure now.
Buy AI Data Center Infrastructure Stock STRL Now and Hold
Sterling, which traces its roots to the 1950s, is a leader in large-scale site development and mission-critical electrical services for data centers and beyond.
STRL began pivoting its business to become the higher-margin, growth-heavy firm it is today roughly a decade ago. The company was able to looked ahead and see the massive growth pipeline across e-commerce, data centers, and more.
The infrastructure company doubled its sales between 2020 ($1.23 billion) and 2025 ($2.49 billion), including 18% YoY growth in 2025.
Sterling grew its GAAP earnings per share (EPS) by 525% between 2020 and 2025, soaring from $1.50 a share to $9.38 last year.
STRL operates across three core segments: E-Infrastructure, Transportation, and Building Solutions.
E-Infrastructure is by far its largest revenue contributor (59% in 2025, 69% in Q4) and driver, with sales up 59% YoY in 2025. Sterling completed its acquisition of leading specialty electrical and mechanical contractor CEC Facilities Group in September 2025 to “significantly expand” its E-Infrastructure capabilities.
This growth also makes sense considering that Sterling operates essential large-scale site development and services and mission-critical electrical services for AI data centers, semiconductor fabrication, manufacturing, e-commerce distribution centers, power generation, and more.
These five areas—AI data centers, semiconductor fabrication, manufacturing, e-commerce distribution centers, and power generation—could arguably become the growth engines of the entire U.S. economy.
The AI capex boom is heating up in 2026, driven by Nvidia NVDA, the AI hyperscalers, and more, as everyone races not to get left behind in the AI arms race.
The U.S. is reshoring critical industries such as semiconductor manufacturing, with heavyweights Taiwan Semi and Micron actively expanding their fabrication bases in the U.S.
The power-hungry AI data center boom, the broader electrification push, and years of underinvestment are leading to once-in-a-generation growth of the energy sector from nuclear power to grid expansion.
Meanwhile, Sterling’s Transportation Solutions, as the name suggests, is focused on highways, bridges, airports, rail, and more. Its Building Solutions segment is centered around concrete foundations for homes, parking structures, and commercial buildings.
The "Strong Buy" Stock’s Growth Outlook
The firm posted another solid beat-and-raise performance when it reported its Q4 results on February 25, offering robust 2026 guidance that helped Sterling earn its Zacks Rank #1 (Strong Buy).
Sterling ended 2025 with a signed backlog of $3.0 billion, which grew 78% from year-end 2024 (and 49% on a same-store basis). STRL said that its “signed backlog, unsigned awards, and future phase opportunities give us visibility into a pool of work approaching $4.5 billion.”
This backdrop is why its FY26 earnings estimate jumped another 15%, with its FY27 outlook 5% higher, extending its impressive run of upward EPS revisions.
Sterling is projected to grow its revenue by 25% in 2026 and another 9% in 2027 to reach $3.38 billion. Meanwhile, it is expected to expand its adjusted EPS by 26% and 15%, respectively.
More Reasons to Buy AI Data Center Infrastructure Stock STRL
STRL has skyrocketed ~1,700% in the past five years to blow away its highly-ranked industry’s 140%, the S&P 500’s 75%, and even outclimb Nvidia’s 1,340%. This is part of a much larger surge over the past 10 and 25 years.
Sterling stock has surged 260% in the past 12 months. Yet, its recent pullback after its earnings report has it trading 8% below its peaks.
Valuation-wise, STRL trade 22% below its recent highs at 31.1X forward 12-month earnings.
The stock found support at its 50-day and its longer-term 10-week moving averages in the first week of March.
Sterling's recent jump has it on the cusp of possibly breaking out to its all-time highs and then into a new trading range.
Griffon Corporation’s earnings estimates extended their downward trend after the maker of everything from garage doors to residential and industrial ceiling fans offered disappointing guidance on February 5.
GFF’s recent downward revisions earn the stock a Zacks Rank #5 (Strong Sell) as some of its business segments come under pressure against a tough-to-compete-against period of growth and other headwinds, such as a slowing housing market.
Should Investors Stay Away From GFF Stock Right Now?
Griffon is a diversified management and holding company that operates through two core reportable segments: Home and Building Products and Consumer and Professional Products.
GFF’s Home and Building Products is focused on residential sectional garage doors, alongside commercial sectional doors, rolling steel doors, and grille products sold across various brands.
Meanwhile, its Consumer and Professional Products portfolio features branded residential and industrial ceiling fans, wire and wood shelving, storage cabinets, long-handled tools, and landscaping products, and more.
GFF’s business experienced large growth between 2020 and 2022 as the housing market boomed amid low interest rates and historic Covid-based housing market trends. Things have cooled off over the last few years for Griffon.
Griffon’s earnings estimates slipped again after it offered downbeat guidance when it reported its Q1 fiscal 2026 results on February 5. Its recent string of negative revisions earn GFF a Zacks Rank #5 (Strong Sell).
Some long-term investors might want to put Griffon on their watchlists. But it is likely best to look elsewhere right now for a stock to buy in March.
Additional content:
Visa Packs Its Bags for APAC Travel Boom: A Virtual Card Play
As Asia Pacific travel rebounds, Visa Inc. is positioning itself at the center of the region's evolving travel payments landscape. It has teamed up with Trip.com Group to roll out a global virtual travel card program aimed at streamlining and securing payment processes throughout the travel supply chain. The initiative, issued through Trip.com’s fintech arm TripLink, has already debuted in Singapore and is expanding to Hong Kong and the Netherlands.
The program introduces Visa virtual card credentials across Trip.com’s operations, making B2B payment transactions between travel agencies, hotels and suppliers much smoother. By automating the reconciliation process and boosting data visibility, this system helps reduce operational hiccups for travel partners while enhancing payment reliability across various booking platforms.
The timing of the rollout aligns with a strong rebound in regional tourism. Per V’s research, more than half of consumers in the Asia Pacific region are gearing up to travel internationally in the next few months, with Japan, China and Australia topping the list of popular destinations. As cross-border travel picks up, card-based payments remain the preferred method for overseas spending, thanks to security features, global acceptance and reward ecosystems.
This partnership boosts V’s presence in the fast-growing travel payments sector. Virtual cards are becoming increasingly popular as businesses look for payment solutions that are automated and easy to track. By integrating its network more deeply into the travel booking process, Visa not only increases its transaction volume but solidifies its position as the essential financial support for digital travel commerce.
How Are Competitors Faring?
Some of V’s competitors in the payments space include Mastercard Inc. and American Express Co.
Mastercard continues strengthening its travel payments footprint through partnerships with travel technology firms. Recently, MA teamed up with Travelsoft Pay to automate B2B travel settlements using virtual card technology, improving payment security and efficiency across travel suppliers and intermediaries.
American Express continues to focus on premium travel and lifestyle rewards through its Membership Rewards program. Cardholders benefit from flexible point redemption, access to exclusive experiences and partnerships with airlines and hotels, reinforcing AXP’s position in high-value, experience-driven loyalty.
Visa’s Price Performance, Valuation & Estimates
Over the past year, shares of Visa have declined 5.3% compared with the industry’s 17.2% fall.
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 23.12, above the industry average of 18.24. V carries a Value Scoreof D.
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies an 11.9% jump from the year-ago period.
Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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Sterling Infrastructure and Griffon have been highlighted as Zacks Bull and Bear of the Day

Key Points
Berkshire Hathaway has owned American Express stock for more than 30 years.
The stock has outperformed the S&P 500 over the past decade.
As American Express continues to raise its dividend, the yield on a cost basis for Berkshire Hathaway rises.
American Express (NYSE: AXP) is one of Berkshire Hathaway's (NYSE: BRKA)(NYSE: BRKB) longest-held stocks. It first bought the stock way back in 1964. It later sold that position but reopened it in 1991 and hasn't sold it since. In fact, it's one of the stocks that Warren Buffett said he'd never sell. But now that Buffett is no longer CEO, could the stock be on the chopping block?
New CEO Greg Abel made it clear that he's not looking to change things up at the company. Beyond that, however, if you understand what American Express stock does for Berkshire Hathaway, you'd see how lucrative it is and how much sense it makes to keep it in the portfolio.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Berkshire Hathaway bought American Express stock over a several-year period, ending in 1995. Today, it owns 151,610,700 shares, or 22.1% of the entire company, worth more than $46 billion.
American Express stock has crushed the market performance-wise over the past 10 years, with a total return of 496% compared to 305% for the broader index. But Berkshire Hathaway gets much more than unrealized gains on this investment.
American Express' dividend yields 1.07%, which isn't terrific. In fact, it's below the S&P 500 average of 1.15%.
However, the yield on the cost basis is much higher than that, since the dividend has grown over the past three-plus decades in which Berkshire Hathaway has owned the stock. Berkshire Hathaway paid about $1.3 billion in total for its stake in American Express, making its cost basis about $8.60 per share.
The annual dividend per share is $3.80, which means it's making 44% a year on its original investment just in dividends. That worked out to $479 million in 2025 alone and makes more every year as American Express raises the dividend.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
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American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

You Won't Believe How Much Money Berkshire Hathaway Gets From American Express Dividends

Key Points
Greg Abel took over for Warren Buffett at the start of 2026, managing the bulk of Berkshire's portfolio.
Abel said there are nine stocks where Berkshire will exhibit limited trading activity.
Many of those stocks look like good opportunities for investors right now.
Warren Buffett once wrote, "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." While Buffett constantly aimed to buy only wonderful businesses, few met the criteria for becoming the stocks Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) would hold forever.
In his first letter to shareholders, Buffett's successor at Berkshire, Greg Abel, called out nine companies he describes as core holdings in the company's equity portfolio. Combined, they account for over 60% of the company's portfolio. Investors should expect "limited activity in these holdings," Abel said. Many of the stocks Abel mentioned align with previous comments from Buffett, but not all of them. Here are the nine stocks Abel plans to hold forever.
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1. Apple (19% of marketable equities)
Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest marketable equity position. That's despite Warren Buffett's decision to sell more than three-quarters of its shares over the last two years of his tenure as CEO. Abel's comments in his shareholder letter suggest that the selling spree could be over.
Apple's lower capital intensity compared to its big-tech peers has made it stand out so far in 2026. While hyperscalers are spending over $700 billion in combined capital expenditures to build out artificial intelligence (AI) data centers this year, Apple is on track for another year of free cash flow exceeding $100 billion.
Despite delays in its revamped Siri, meant to introduce more powerful AI features to its devices, Apple saw strong sales growth last quarter across both devices and services. iPhone sales, in particular, stood out, up 23% year over year, bolstered by strength in Greater China. If the Siri revamp is a success, it could post another strong year of iPhone sales this year as it spurs a major upgrade cycle.
While the stock may seem expensive at 30 times forward earnings, its share repurchase program, solid revenue growth, and expanding margins make it a fair price for the stock.
2. American Express (15%)
American Express (NYSE: AXP) has been a core holding for Berkshire for over 30 years, and Abel intends to continue to hold the stock indefinitely.
Amex is successfully executing on its efforts to attract high-end consumers and small businesses with its card portfolio. It refreshed the Platinum card last year for both consumers and businesses, and it was met with praise despite the increase in annual fees. Those fees are growing quickly, but they're now just a small part of the business. Net interest income is also climbing, as Amex has shifted to offering more credit lines instead of charge cards paid off in full each month. Still, the majority of revenue comes from the interchange fees it collects from payment processors on each transaction.
Amex is well-positioned to capitalize on the continued shift to digital payments. It's using its flagship cards to attract young, high-income customers to its product and keep them for the long run. That enables it to generate strong operating leverage, driving earnings growth faster than its top line. As such, its forward P/E ratio of just 17 looks like a great value right now.
3. Coca-Cola (10%)
Coca-Cola (NYSE: KO) is another longtime holding established by Buffett. The company's moat stems from its global brand recognition. That enables it to raise prices in established markets and use its existing products to introduce new ones and expand its addressable market. The result is steady revenue growth and margin expansion.
Management targets mid-single-digit revenue growth over the long run, and it achieved just that last year. Its 5% organic revenue growth for the year was primarily driven by price increases. Investors can expect similar growth in 2026 with slightly better earnings-per-share growth from margin improvements and share repurchases.
With the stock trading at 24 times forward earnings, it might be a bit overpriced given the slow-and-steady nature of the business. But considering Berkshire's sitting on $29.5 billion worth of capital gains on its original investment of $1.3 billion, it's unlikely Abel wants to sell those shares anytime soon.
4. Moody's (4%)
Buffett never called out Moody's (NYSE: MCO) as one of his forever stocks, but Abel made it clear that it's a core position in his letter to shareholders. Berkshire originally acquired the stock in 2000 and sold off roughly half of it in 2009 and 2010. But Buffett didn't touch the stock after 2013.
Moody's is a credit rating agency that's trusted worldwide. That's important for investors and bond issuers alike. Bond investors want to know whether debt issued by one company is safer or riskier than a bond issued by a completely different company. To do that, they need to be rated by the same agency. That creates a network effect, giving Moody's a wide moat for its Investors Service business, which accounts for about two-thirds of its income. The rest of the company's earnings come from its Analytics business, which is growing faster. Moody's is using acquisitions to help scale, expanding its market and services.
Pricing power for the ratings business and operating leverage in its analytics business should help push earnings per share up double digits next year. Management guided for 9% revenue growth. With shares trading for 28 times forward earnings estimates, it looks like a fair price to pay for the stock.
5-9. Japanese trading houses (14%)
In 2019, Buffett and Charlie Munger established positions in each of the five Japanese trading houses: Mitsubishi (OTC: MSBHF) (OTC: MTSU.Y), Mitsui (OTC: MITSY) (OTC: MITSF), Itochu (OTC: ITOCF) (OTC: ITOCY), Sumitomo (OTC: SSUMF) (OTC: SSUMY), and Marubeni (OTC: MARUF) (OTC: MARUY). He added to them over the years, exceeding 10% stakes in several last year.
These five companies all operate in a similar manner to Berkshire Hathaway. As such, Abel sees them not just as investments but also as potential partners for international investments. With the five trading houses, Abel has a wealth of experts to consult across multiple industries.
Many of the stocks continue to trade at attractive valuations. Berkshire has borrowed yen equal to the amount of its cost basis, hedging some of the currency risk of the investment while taking advantage of the country's low interest rates. Meanwhile, the dividends paid by the businesses more than cover the interest paid on the loan.
Abel said other companies could eventually become core holdings, but for now he may be focused on trimming non-core positions and on the biggest and best investments in Berkshire's portfolio.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
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*Stock Advisor returns as of March 11, 2026.
American Express is an advertising partner of Motley Fool Money. Adam Levy has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Moody's and is short shares of Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Greg Abel Has Over 60% of Berkshire Hathaway's Stock Portfolio Invested in 9 Forever Stocks

As Asia Pacific travel rebounds, Visa Inc. V is positioning itself at the center of the region's evolving travel payments landscape. It has teamed up with Trip.com Group to roll out a global virtual travel card program aimed at streamlining and securing payment processes throughout the travel supply chain. The initiative, issued through Trip.com’s fintech arm TripLink, has already debuted in Singapore and is expanding to Hong Kong and the Netherlands.
The program introduces Visa virtual card credentials across Trip.com’s operations, making B2B payment transactions between travel agencies, hotels and suppliers much smoother. By automating the reconciliation process and boosting data visibility, this system helps reduce operational hiccups for travel partners while enhancing payment reliability across various booking platforms.
The timing of the rollout aligns with a strong rebound in regional tourism. Per V’s research, more than half of consumers in the Asia Pacific region are gearing up to travel internationally in the next few months, with Japan, China and Australia topping the list of popular destinations. As cross-border travel picks up, card-based payments remain the preferred method for overseas spending, thanks to security features, global acceptance and reward ecosystems.
This partnership boosts V’s presence in the fast-growing travel payments sector. Virtual cards are becoming increasingly popular as businesses look for payment solutions that are automated and easy to track. By integrating its network more deeply into the travel booking process, Visa not only increases its transaction volume but solidifies its position as the essential financial support for digital travel commerce.
How Are Competitors Faring?
Some of V’s competitors in the payments space include Mastercard Incorporated MA and American Express Company AXP.
Mastercard continues strengthening its travel payments footprint through partnerships with travel technology firms. Recently, MA teamed up with Travelsoft Pay to automate B2B travel settlements using virtual card technology, improving payment security and efficiency across travel suppliers and intermediaries.
American Express continues to focus on premium travel and lifestyle rewards through its Membership Rewards program. Cardholders benefit from flexible point redemption, access to exclusive experiences and partnerships with airlines and hotels, reinforcing AXP’s position in high-value, experience-driven loyalty.
Visa’s Price Performance, Valuation & Estimates
Over the past year, shares of Visa have declined 5.3% compared with the industry’s 17.2% fall.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 23.12, above the industry average of 18.24. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies an 11.9% jump from the year-ago period.
Image Source: Zacks Investment Research
Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Visa Packs Its Bags for APAC Travel Boom: A Virtual Card Play

Payments giant Mastercard Incorporated MA has rarely looked cheap. For years, the company traded at a premium that seemed detached from traditional valuation metrics. Investors were willing to pay up because Mastercard isn’t just another financial company. It sits at the center of the global payments ecosystem, connecting banks, merchants and consumers across more than 200 countries.
That strategic position has helped the company deliver consistent growth and strong margins, making the premium valuation easier to justify. Still, the current setup looks different from the past. Mastercard’s valuation has cooled compared with its historical averages, raising an interesting question for investors: Is the stock still expensive, or is it finally approaching a reasonable entry point?
Currently, Mastercard trades at about 25.94X forward 12-month earnings. That is clearly higher than the financial transaction industry average of 18.34X, highlighting the market’s willingness to reward Mastercard for its scale and resilience. However, that level is below its five-year median multiple of 30.77X, suggesting that investors are paying less for each dollar of future earnings than they have historically. Among major peers, Visa Inc. V and American Express Company AXP trade at 23.24X and 16.98X, respectively.
In other words, Mastercard still commands a premium, but the gap is no longer as wide as it once was.
Image Source: Zacks Investment Research
Wall Street Sees Upside
Analysts largely remain optimistic about Mastercard’s trajectory. The stock currently trades below the average analyst price target of $662.78, implying potential upside of roughly 26.9% from current levels. Targets range widely from $500 to $756, reflecting different assumptions about growth, spending trends and valuation multiples.
MA’s Price Performance
So far in 2026, Mastercard shares have not been immune to broader market volatility. The stock is down about 9.3% year to date, slightly better than the industry, which has fallen 9.5% over the same period. Visa shares declined about 9.9%, while American Express dropped roughly 17.4%. By comparison, the S&P 500 Index slipped 1.8%.
YTD Price Performance: MA, V, AXP, Industry & S&P 500
Image Source: Zacks Investment Research
Why the Premium May Still Be Justified
With a market capitalization of roughly $465.8 billion, Mastercard benefits from powerful network effects that are extremely difficult for competitors to replicate. Every additional cardholder and merchant strengthens the network, creating a cycle that reinforces the company’s dominance. At the same time, the payments landscape continues to evolve. Competition is intensifying from traditional rivals like Visa and American Express, as well as fintech firms offering alternative payment solutions.
Despite these pressures, Mastercard has consistently shown an ability to adapt. The company has expanded beyond basic transaction processing and built a large value-added services business that includes cybersecurity tools, fraud prevention, data analytics and consulting. This segment has become an increasingly important growth engine. Revenues from value-added services rose 17.7% in 2023, 16.8% in 2024 and 22.9% in 2025, reflecting strong demand from banks, merchants and governments seeking better payment insights and security.
Cross-border transactions remain another powerful driver of profitability. These payments typically carry higher fees and are closely linked to global travel and international commerce. Mastercard’s cross-border assessments jumped 27.5% in 2023, followed by 21.1% growth in 2024 and 18.1% growth in 2025. Meanwhile, gross dollar volume reached $10.6 trillion in 2025, rising 8.7% year over year, showing that spending trends across the network remain resilient.
The company continues to return significant capital to shareholders. In 2025, Mastercard repurchased $8.2 billion worth of shares and paid $2.8 billion in dividends. Between Jan. 1 and Jan. 26, the company bought back another $715 million in stock, while $16.7 billion remained available in its repurchase fund. Strong cash generation supports these returns. Mastercard produced $17.6 billion in operating cash flow in 2025, up from $14.8 billion in 2024.
Stablecoins: Where MA Stands?
A growing topic in the payments industry is the potential rise of stablecoins. Reports suggest that companies such as Walmart and Amazon are exploring their own U.S. dollar-pegged digital currencies. The goal would be to control their payment ecosystems and reduce the interchange fees typically paid to networks like Visa and Mastercard. The GENIUS Act is also expected to encourage more companies to experiment with real-world stablecoin applications.
While the idea sounds disruptive, stablecoins still face limitations. Faster settlement and lower transaction costs are attractive, particularly for cross-border payments, but they do not yet offer the same fraud protection, credit access and reward programs that traditional card networks provide.
Mastercard has taken a proactive approach. The company is integrating stablecoins into parts of its infrastructure through partnerships and technology upgrades, positioning itself to benefit as the technology gains broader adoption. For now, stablecoins appear to be more of a long-term development rather than an immediate threat to Mastercard’s core business.
Strong Estimates for Mastercard
The Zacks Consensus Estimate points to 14% EPS growth in 2026 and 15.7% in 2027, backed by projected revenue gains of 12.7% and 11.9%, respectively. The stock has seen three upward earnings estimate revisions over the past month for 2026 against no downward adjustments.
The company has delivered earnings beats over the past four quarters, averaging a 5.5% surprise, further validating its operational consistency.
Mastercard Incorporated Price, Consensus and EPS Surprise
Mastercard Incorporated price-consensus-eps-surprise-chart | Mastercard Incorporated Quote
Risks Investors Should Watch
Despite its strong positioning, Mastercard is not without challenges. Adjusted operating expenses have accelerated steadily, rising 10.5% in 2023, 11% in 2024 and 14.3% in 2025. At the same time, rebates and incentives, classified as contra-revenue, increased 22% in 2023, 16.1% in 2024 and 16.4% in 2025, which can weigh on net revenue growth.
Regulatory scrutiny remains another key risk. In June 2025, the London Competition Appeal Tribunal ruled that Mastercard and Visa’s multilateral interchange fees violated European competition law.The U.K. Payment Systems Regulator is expected to impose fee caps, which could limit revenue growth in that market. Also, several U.K. banks are exploring a national payment alternative aimed at reducing reliance on U.S. card networks.
In the United States, the DoJ has accused MA and V of leveraging their dominance to overcharge merchants. The resurrected Credit Card Competition Act proposal could introduce changes to card routing rules, potentially reshaping the economics of payment networks.
Conclusion
Mastercard’s premium valuation reflects its durable business model, global scale and consistent growth. While the stock still trades above the industry average, the multiple looks more reasonable compared with its historical levels. Strong cross-border activity, expanding value-added services and steady earnings growth support the long-term outlook. However, regulatory scrutiny, rising incentives and operating expenses remain important risks to monitor.
With both supportive drivers and potential headwinds in play, Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	24.06 13.58
Price/Sales	2.67 2.08
P/B	7.62 1.18
P/FCF	11.41 10.49

Indicator	TTM Median
ROE	33.08 10.31
ROA	3.64 1.17
ROI	12.13 6.85
Net Worth	248.44 1.01
Quick Ratio	0.00 1.37
Current Ratio	1.61 0.97

Indicator	TTM Median
Net Profit Margin	13.30 16.80
Operating Margin	17.12 22.80
Gross Margin	89.77 69.57
Return on tangible equity	33.00 12.33

Indicator	TTM Median
EPS	3.04 0.68
EPS Forecast	3.55 0.67
Revenue	21.04B 84.00M
Gross Profit	18.43B —
EBITDA	0.00 —

American Express Company

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue