Mastercard’s (MA) long-running streak that has seen it outperform its peers in the S&P 500 came to an end in the year 2000. The stock of the giant-cap payments processor only gained 0.7 percent in 2021, which was significantly lower than that of the index’s 26.9 percent increase. The positive news for the shareholders of Mastercard is that the stock appears like it will return to its previous highs in 2022. The stock is up bit in the past year and is higher than the decline of 5% that the index has seen in S&P 500.

What growth investors must be aware of about the Mastercard stock forecast for the year ahead.

The company actually reaps the benefits of inflation.

With the rate of inflation reaching an all-time high of 7percent at the end of December an understatement to say inflation is the topic of discussion for economists as well as investors and consumers. Investors should be cognizant when they design their portfolios to ensure that they are able to withstand all economic climates, even during high inflationary times.

It’s a good thing that Mastercard can perform particularly well as inflation increases due to both the business structure and its fortress-like balance sheet. Mastercard earns its revenue from the amount of transactions as well as the number of transactions the company’s payment network processes for banks which issue cards.

Despite a rather high rate of inflation, U.S. consumers remained not swayed by their spending upon the latest month’s data, which was November 2021. At this date, U.S. consumer spending was up 0.6 percent over the previous period. This means that a more manageable inflation rate and the subsequent increase in the price of services and goods could be more of an advantage than a negative impact on the company’s profitability and revenue in the near future. This helps explain why experts are forecasting 20 percent growth in Mastercard’s revenues this year, to $22.5 billion. This increased revenue will propel Mastercard’s Non-GAAP (adjusted) earning per share (EPS) to $10.51 which is an increase of 27.

On the balance sheet aspect of the equation Mastercard will not be affected by the a series of interest rate hikes which the Federal Reserve is planning this year to control inflation. The reason is that Mastercard’s net credit is just $6.9 billion ($13.9 billion of long-term debt less $6.9 billion in investments and cash). Mastercard can swiftly pay off any loans with variable rates in the event that interest rates rise rapidly. This is because the business has produced $10.8 billion of earnings prior to taxes, interest amortization, depreciation, and interest (EBITDA) over the past twelve months.

The potential COVID-19 headwinds are still there, however they are more manageable.

Although COVID-19 was still a factor on the recovery of the economy in 2021, it did not hinder the world economy from expanding by around 5.5 percent by 2020, as per the World Bank. Despite COVID-19-related disruptions to economic activity, which is expected to occur in 2022. Vaccines and antiviral medications such as those from Pfizer (PFE) can assist in reducing the impact of the omicron-related variant over the entire year. Thus PFE is the World Bank anticipates that global economic growth will decrease a little, to 4.1 percent in 2022.

It could also be an impetus to propel the Mastercard’s earnings and revenue up in 2022.

Purchase a Mastercard now before the card is gone

Mastercard seems to be in a position to provide another year of outstanding earnings and revenue growth. With the fair valuation for a company of its good quality, this could result in a spectacular 2022. What’s the reason I believe that Mastercard is a great value for investors who are looking to grow?

The stock is trading at a projected 2022 earnings multiplier of 35. Although this might sound like a high number however, experts are forecasting that the growth in earnings will grow from 22% per year in the past five years , to 26% per year in the coming five years. If you take Mastercard’s long-term tailwinds as well as the strong balance sheet into consideration and the strong balance sheet, this could be a acceptable price for the company. It also highlights the reason why Mastercard’s current share price of $361 could yield investors a profit of 19%, which is based on the median analyst goal of $430 this year.

Add in the savings account-beat 0.5 per cent dividend yield on shares as well, in addition, Mastercard is a great stock for investors who are looking to grow won’t want be missing out on in 2022.

The top-quality small-cap stock that is that is slipping under the radar of the City.

Investors who are savvy and adventurous like you will not wish to miss the chance to take advantage of an amazing chance…

It is evident that over the past three years the AIM-listed company is quietly moving forward… providing shareholders with a generous shares of growth due to a well-planned “buy and Build” strategy.

and a top-quality management team in place and a well-tested and well-executed business plan and market-leading positions in niche, high-margin items… Our analysts think there’s plenty to grow to come up.