4-Star Blue Chips Poised to Pop: MasterCard

Updated

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

$58.5 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$7.2 billion

Management

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

Return on Equity (average, past 3 years)

39.6%

Cash / Debt

$5.6 billion / $0

Dividend Yield

0.3%

Competitors

American Express
Discover Financial Services
Visa


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

On CAPS, 92% of the 3,288 members who have rated MasterCard believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, All-Star Chemdawg, succinctly summed up the MasterCard bull case for our community:

[L]ots of spending coming, and almost all of it will be on plastic ... these guys get paid for each swipe without all of the downside of having to worry about actual customers and their declining ability to pay. I don't see anything stopping the money train anytime soon ... I get that [Google (NAS: GOOG) ] and the digital wallet is on the horizon, but not everyone will feel comfortable with that until it has been around for while.

If you want market-thumping 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 its four-star rating, MasterCard may not be your top choice.

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The article 4-Star Blue Chips Poised to Pop: MasterCard originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Google and MasterCard. Motley Fool newsletter services recommend American Express Company, Google, and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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