Saturday, January 4, 2014

Why MasterCard Is Worth Pouncing On

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, credit card giant MasterCard (NYSE: MA  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at MasterCard and see what CAPS investors are saying about the stock right now.

MasterCard facts

Headquarters (founded)

Purchase, N.Y. (1966)

Market Cap

$66.3 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$7.5 billion

Management

CEO Ajaypal Banga (since 2010)
CFO Martina Hund-Mejean (since 2007)

Return on Equity (average, past 3 years)

40.5%

Cash / Debt

$5.0 billion / $0

Dividend Yield

0.4%

Competitors

American Express
Discover Financial Services 
Visa

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 3,372 members who have rated MasterCard believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, fellow Fool Jason Moser (TMFJMo), highlighted MasterCard as a particularly timely bargain opportunity: "Like I said on Investor Beat today, you gotta buy this one on the dip. Crazy network effects, scalable and 30%-plus net margins operating in a virtual duopoly. Yes please."

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, MasterCard may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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