While shares of Purchase, N.Y.-based Mastercard Inc. (MA) have rallied nearly 30% year-to-date (YTD) versus the S&P 500’s 10.2% gain over the same period, one team of analysts recommends buying shares ahead of its Investor Day next week.

On top of better-than-expected earnings reported by the credit card processor earlier this month, analysts at Baird point to upside from new deals with a grocery partner and a wearable technology maker. (See also: Trader Bets MasterCard Rises 4 Percent In 3 Weeks.)

Bulls Highlight New Deals

Analyst David Koning and his team wrote in a research note this week that they “like MA into investor day,” slated for Sept. 7. Koning foresees management upping 2018 guidance, serving as a positive catalyst for MA shares. “We think 2018 estimates could rise ~1-2%+. Here’s what we like: (1) we think Q3-17 consensus net revenue biased 1-2% higher (consensus not updated for guidance), (2) fx has become a greater tailwind to 2018 than when last reported, and (3) we consider other possible 2018 levers to be lower tax rate and better rebates/incentives,” according to coverage in Barron's.

Baird is also optimistic regarding Mastercard’s new deal with grocer Kroger Co. (KR) after it was selected as the network for KR cards. Mastercard will be on Fitbit Inc.’s (FIT) anticipated new smartwatch, the Ionic, alongside competitor Visa Inc. (V). San Francisco-based Fitbit’s new $300 smartwatch is expected to revamp sales of the beaten-down fitness tracker company and serve as a legitimate competitor against Apple Inc.’s (AAPL) smartwatch.

Overall, as shares of Mastercard continue to surge to new record highs since reporting better-than-expected earnings in mid-August, analysts suggest it’s not too late for investors to get in on the action. (See also: New Fitbit Watch Can Reverse Bad Fortune: Analysts.)

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