Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable, global trend as a support. And this in mind, MasterCard (NYSE: MA) is worth a review.

The market sell-off and tumult of 2008 spared almost no stocks, and MasterCard took a beating, as well, with investors driving shares down to the $120-range from $320.

Few would deny that the electronic transaction via a credit or debit card is playing a larger role in U.S. and international commerce. And that's good news for Mastercard Inc. (NYSE: MA).

Serving 25,000 financial institutions worldwide in more than 210 countries, Mastercard Inc. (NYSE: MA) is the second largest payment system, behind Visa, issuing credit and debit brand cards that provide access to its transaction network. For a fee, of course.

Further, revenue from those fees and other charges is advancing at a solid pace. In general, analysts expect 15-20% revenue growth in 2007, and 14-17% in 2008. Margins should also be solid. The Reuters F2007/F2008 EPS consensus estimates for MA are $5.57/$6.83.

Other positives: Mastercard has multiple opportunities to increase market share, both domestically and internationally, as acceptance of credit card use for non-traditional purchases grows. International growth opportunities are likely to offer larger market share gains.

The drawbacks? Mastercard remains vulnerable to a U.S./global economic slowdown, and analysts are also watching the appearance of new competitors in the payment space, building price pressure.

The First Call mean rating for MA is: Buy [20 firms]. Mean 2008 target: $210.20 [high: $300, low: $155].

Stock Analysis: Mastercard is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from MA's shares. Sell / Stop Loss: $145.