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Why MasterCard Is Poised to Keep Poppin'

By Brian D. Pacampara, CFA - Apr 8, 2013 at 12:00PM

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Market-trouncing returns could be written in these four stars.

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 (MA -2.22%) has earned a respected four-star ranking.

With that in mind, let's take a closer look at MasterCard and see what CAPS investors are saying about the stock right now.

MasterCard facts

Headquarters (founded)

Purchase, N.Y. (1966)

Market Cap

$65.3 billion

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$7.4 billion

Management

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

Return on Equity (average, past 3 years)

39.9%

Cash / Debt

$5.0 billion / $51.0 million

Dividend Yield

0.5%

Competitors

American Express
Discover Financial
Visa 

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

On CAPS, 92% of the 3,342 members who have rated MasterCard believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, bigelli13, succinctly summed up the MasterCard bull case for our community:

Low risk, high return. Financial strength is high. Lots of recent momentum. Profit margin is greater than industry average. ... Growing profit margins from previous year. Large market cap. Forecasted cash flows per share in five years is greater than current share price.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Mastercard Incorporated Stock Quote
Mastercard Incorporated
MA
$340.69 (-2.22%) $-7.74

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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