| Stock (Symbol) | Stock Price | |
MasterCard (MA) |
$271 |
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| Data is as of | Expected to Report | Sector |
June 17, 2011 |
Aug 1 |
Financial |
| Sharek’s Take | ||
 Mastercard looks great with its 16 P/E and 30% profit groeth expected the next two quarters. Financials are taking a hit with the stock market correction — but not Mastercard. MA is holding its own, and with 30% profit growth expected the next two quarters, this stock could be a leader the next time we go into rally mode.The Federal Reserve is trying to put of max card swipe fee of 12 cents per transaction on banks. That would cut bank profits and then Visa and Mastercard would probably have to cut their fees too. This news came out last week, and hurt MA a little. I’m not diving into the political implications this quarter. Let’s see what happens. |
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| One-Year Chart | ||
 We are currently in a six-week stock market correction. MA has been holding its own. This one-year chart looks great — MA just won’t back down.
MA’s P/E rose from 15 to 16 this quarter. Still, this stock is easlily worth 20 times earnings. Easy. I love the 30% growth showing in Estimates for the next two quarters. |
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| Earnings Table | ||
 Revenue growth has been accelerating. 5% 3QtrsAgo, 11% 2QtrsAgo, and 15% last quarter. Profits rose 24% last quarter. I love how profits always grow faster than sales at Mastercard. Management thinks International revenue should grow at greater than 10% a year during 2011-2013.
MasterCard beat estimates by 22 cents last quarter, better than the 13 cents 2QtrsAgo. |
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| Fair Value | ||
 MA is easily worth 20 times earnings. That means the Fair Value for 2011 is $400 — 47% higher than today’s price. Mastercard’s a conservative company with dependable revenue. |
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| Ten-Year Chart | ||
 Wow, this ten-year chart looks really good. The stock’s almost made it back to the all-time of $309 set in May 2008. But, back then the company was expected to make around $8.65. That’s good it beat that number with a $9.04 profit. Now MA could make double than that, yet the stock price hasn’t increased. This smells like the P/E will expand. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
12 of 22 |
Mastercard has solid over the next two years. The expected profit growth of 30% is excennent compared next tow the P/E of only 16. This is the one financial stock I love.
MA is ranked 12th in the 22 stock Growth Portfolio Power Rankings and is ranked 11th in the 11 stock Aggressive Growth Portfolio Power Rankings. Although profits are growing strong and there’s solid upside here, MasterCard isn’t a high-octane growth stock. |
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Aggressive Growth Portfolio
11 of 11 |
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