| Stock (Symbol) | Stock Price | |
MasterCard (MA) |
$470 |
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| Data is as of | Expected to Report | Sector |
November 12, 2012 |
Jan 28 |
Financial |
| Sharek’s Take | ||
 Mastercard’s rapid growth is over. Profit growth and revenue growth have decelerated and MA isn’t a 20% grower right now. I shade 20% or better profit growth in green, and the green is disappearing from MA’s Earnings Table. Management has stated numerous times it plans on growing at 20% for the long term, and although momentum has cooled, I still feel MA will be able to grow profits at 20% for the next year.Alternatively, the stock keeps climbing like everything’s dandy. The trend is your friend and MA’s trend is up, so stick with the stock. Right now MA is within 14% of its 2013 Fair Value and $536 looks like a good time to sell. |
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| One-Year Chart | ||
 This stock has been trending higher but notice in the bottom right of the chart the figures are no longer shaded in green. The 10% profit growth the company just announced isn’t good, but investors didn’t seem to mind. Also note Estimates show 19% and 16% growth ahead. MA should be able to beat the street and hit 20% profit growth. |
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| Earnings Table | ||
 Revenue growth has slowed from 17% to 9% and now 5% the last three quarters. Profit growth has also slowed from 25% to 19% and now 10% during the same time. Still, the stock stays strong.MA beat the street by 26 cents, way better than the penny it beat by the quarter earlier. But, the 26 cent beat was only after the figure was lowered by 28 cents. Annual Profit Estimates are fair. 16% profit growth is expected next year. Quarterly estimates continue to fall and nothing in the bottom half of this table is in green. |
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| Fair Value | ||
 Although the numbers don’t look great, I still think MA is worth 21 times earnings and has 14% upside to Fair Value. |
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| Ten-Year Chart | ||
 This ten-year chart is very pretty. MA has been going higher so long that I get a feeling the stock’s due for a correction. I bet MA keeps going up for now but when the stock starts to crack I think I might be a seller. Note profits are set to grow only 17% this year (bottom/right), yet the stock’s gone up like company that’s growing faster. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
14 of 17 |
Although profits are expected to grow only 16% the next four quarters, I think MA will put out 20% growth. The stock also pays a 1.2% yield so I think its worth 21 times earnings. Mastercard should continue to trend higher — it’s slightly undervalued — but once MA hit’s its Fair Value it might be time to sell. MA is ranked 14th of 17 stocks in the Growth Portfolio Power Rankings.The stock was sold from the Aggressive Growth Portfolio last quarter. |
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Aggressive Growth Portfolio
N/A |
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