Why Mastercard Stock Climbed 58% in 2019
Shares of Mastercard (NYSE: MA) gained 58.3% last year, according to data provided by S&P Global Market Intelligence. That compares to a return of 28.9% for the S&P 500 index.
The payment processor continued to post stellar growth rates on the top and bottom line. Investors see a long runway of growth for Mastercard in the war on cash. The enthusiasm for the company's prospects translated into a steadily increasing price-to-earnings (P/E) ratio for the shares as the year progressed.
About half of the stock's return last year can be attributed to a higher P/E ratio. Mastercard stock started the year trading for an earnings multiple in the low 30s but ended the year at a P/E of 44.
Source Fool.com
