| Stock (Symbol) | Stock Price | |
MasterCard (MA) |
$427 |
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| Data is as of | Expected to Report | Sector |
May 9, 2012 |
July 30 |
Financial |
| Sharek’s Take | ||
 MasterCard is a solid stock to own during these turbulent conditions. It possesses these characteristics that I value the most in a stock: certainty, consistency and growth opportunity. Lots of stocks have been hammered this month after lowering profit guidance. Through the turmoil, MA stock has bent but not broken as the company has beaten the street and raised estimates.MA stock is one you can trust, and the stock has moved up in my Power Rankings because of this. The only negative is the stock doesn’t have huge upside in the short-term. |
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| One-Year Chart | ||
 The one-year chart looks solid. The stock’s been on a steady rise for a year. Profits were up 25% last quarter and the P/E is a respectable 19. |
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| Earnings Table | ||
 Profits rose 25% last quarter. Revenue growth was 17% LastQtr, down from 20% 2QtrsAgo and 27% 3QtrsAgo.MA beat by 4 cents last quarter, it was beating by bigger ammounts three and four quarters ago. Annual Profit Estimates creeped higher. These numbers have been increasing steadily. Quarterly estimates increased across the board. 18% profit growth is expected on average the next four quarters, and the company should beat that. |
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| Fair Value | ||
 I think MA is worth 23 times earnings, which makes it undervalued by 20%. |
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| Ten-Year Chart | ||
 The ten-year chart looks good, but the stock could use a time-out to rest for a while. At 19 times earnings, the stock isn’t expensive, but MA did sell for around 15 times earnings during parts of 2008-2009. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 17 |
MasterCard is a stock you can count on in this volatile stock market. It possesses certainty, consistency and growth opportunity over the long term. The only negative is MA doesn’t have huge upside to its 2012 Fair Value. MA is ranked 4th in both the 17 stock Growth Portfolio and 7 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
4 of 7 |
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