| Stock (Symbol) | Stock Price | |
MasterCard (MA) |
$361 |
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| Data is as of | Expected to Report | Sector |
December 14, 2011 |
Jan 30 |
Financial |
| Sharek’s Take | ||
 MasterCard is a machine. A little increase in revenue growth leads to big increases in profits. This is a really good company to own, its like they don’t even have to try and profits come in. Grow a little and profit even more. MA is growing rapidly overseas. U.S. purchase volume growth was 13% last quarter, up from 11% two quarters ago. International growth was 20% up from 19% the quarter earlier.Even though the stock has been on a run from $224 to $361 this year (+61%), there is more room to move higher. MA’s P/E is only 17, which is below my Fair Value. MasterCrd will be at the forefront of new credit card technologies like mobile payments and paying with your card without having to swipe your card. |
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| One-Year Chart | ||
 MA’s one-year chart is sweet. Profit growth has been over 40% in three of the last four quarters. Estimates show at least 22% growth in each of the next two quarters, and MA usually beats the street. For 17 times earnings this is a good company to own. |
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| Earnings Table | ||
 Revenue growth was 27% last quarter, profit growth was a blistering 59%.MA whipped estimates by 81 cents, the biggest beat in more than at least two years. I’m guessing at this rate the company will be able to put out 34% growth next quarter, above the 26% estimate. Annual Profit Estimates keep chugging higher. Each year increased by around a dollar. Quarterly estimates increased too — this company should have no problem growing profits 25% next year. |
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| Fair Value | ||
 Upside for 2012 is still solid, and this looks to be a good long-term investment as well. I really like MA. |
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| Ten-Year Chart | ||
 The Annual EPS Growth on the right is amazing. Just amazing. I think analysts are underestimating the power of this company. Its a machine. Momentum is strong. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
5 of 20 |
MasterCard has a lot of momentum leading into 2012. The stock is very timely and has solid upside. Looking into my crystal ball, I think MA will be $517 a year from now — 43% higher. MA is ranked 5th of 20 stocks in the Growh Portfolio Power Rankings. The stock is 6th of 10 stocks in the Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
6 of 10 |
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