4-Star Stocks Poised to Pop: MasterCard

Before you go, we thought you'd like these...
Before you go close icon

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 (NYS: MA) has earned a respected four-star ranking.

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

MasterCard facts

Headquarters (founded)Purchase, N.Y. (1966)
Market Cap$53.0 billion
IndustryData processing and outsourced services
Trailing-12-Month Revenue$7.0 billion
ManagementCEO Ajaypal Banga (since 2010)
CFO Martina Hund-Mejean (since 2007)
Return on Equity (Average, Past 3 Years)43.1%
Cash/Debt$5.2 billion / $0
Dividend Yield0.3%
CompetitorsAmerican Express
Discover Financial Services
Visa

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

On CAPS, 92% of the 3,242 members who have rated MasterCard believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, Cascell, succinctly summed up the bull case for our community:

In my opinion MasterCard, and to a lesser extent Visa, are great companies with a fairly hefty stranglehold on the sharp end of e-commerce. ... The financials all seem to stack up -- increasing EPS, high margins, no long term debt, ridiculous amounts of cash on hand. ... When you add in the fact that [MasterCard] is a truly global brand and there are reasonably high barriers to entry [it's] hard to see how this company can trip up.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. 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 2012." 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 access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.  

At the time this article was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of MasterCard.Motley Fool newsletter serviceshave recommended buying shares of American Express and creating a write covered strangle position in American Express. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners