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.
Purchase, N.Y. (1966)
Data processing and outsourced services
CEO Ajaypal Banga (since 2010)
CFO Martina Hund-Mejean (since 2007)
Return on Equity (average, past 3 years)
$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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