4-Star Stocks Poised to Pop: MasterCard
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.
|Headquarters (founded)||Purchase, N.Y. (1966)|
|Market Cap||$52.6 billion|
|Industry||Data processing and outsourced services|
|Trailing-12-Month Revenue||$7.1 billion|
CEO Ajaypal Banga (since 2010)
CFO Martina Hund-Mejean (since 2007)
|Return on Equity (average, past 3 years)||42.9%|
|Cash/Debt||$5.0 billion / $0|
Discover Financial Services
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 3,275 members who have rated MasterCard believe that the stock will outperform the S&P 500 going forward.
[A]bsolutely sick cash flow ... no debt ... recently doubled dividend and they still have a payout ratio under [10%]. They still have a ton of room to push that higher without anything to worry about ... P/E of 25 is [reasonable] ... and also the fact that almost no one uses cash anymore ... looks pretty healthy from looking at the books. [O]utperform.
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The article 4-Star Stocks Poised to Pop: MasterCard originally appeared on Fool.com.Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of Visa and creating a write covered strangle position in American Express. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not 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.
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