As the economy continues to adjust to rising interest rates, easing inflationary pressures and the continued likelihood of a recession this year, Mastercard (NYSE: MA) is business as usual. For 2023, the card payments giant reported that revenue and diluted earnings per share (EPS) rose 13% and 16%, respectively. This shows that consumer spending remains strong, while also proving that this business is simply in a favorable position compared to most others.

Mastercard stock has returned 567% over the past decade, including dividends. The S&P 500 has returned 240% over the same time period. That’s a significant outperformance. Even when the market fell in 2022, Mastercard stock was down just 3%. The business has built a reputation for taking care of its shareholders regardless of the state of the overall economy.

Due to its strong performance, the stock trades at a premium valuation. The current price-to-earnings (P/E) ratio of 38.9 is much more expensive than the average P/E for the S&P 500 (P/E 22) or the Nasdaq-100 index (P/E 30.9). From a potential investor’s perspective, today may not be the best time to buy the stock.

But before you give up on Mastercard, realize that over the past 10 years, the company’s revenue and diluted earnings per share have grown at compound annual rates of 11.7% and 16.5%, respectively. And maintaining strong financial performance during volatile economic times suggests that this is a top-tier company.

Over the next three years, Wall Street analysts estimate that sales will grow at a 12.1% annualized rate and diluted earnings per share will increase at a 16.9% annualized rate. As a general rule, investors should take any Wall Street analysts’ estimates with a grain of salt. The world is too unpredictable to predict with accuracy what will happen in the future.