Riding on a strong growth momentum, the shares of
) reached a new 52-week high of $586.37 on Jun 19. This surpassed
its previous high of $584.85 on May 21. This Zacks Rank #3 (Hold)
stock surged about 37.2% in the last 52 weeks.
Particularly, this global electronic payment processor rose
about 8.6% since the company reported its first-quarter 2013
results in the beginning of May with a positive earnings surprise
Yesterday's closing price represents a strong one-year return
of about 37.4% and a year-to-date return of about 21.4%. The
S&P 500 index jumped 27.5% and 13.9%, respectively during the
same period. Average volume of shares traded over the last three
months stands at approximately 557.4K.
On May 1, MasterCard reported its first-quarter earnings per
share of $6.23, which comfortably surpassed the Zacks Consensus
Estimate of $6.19. However, the result significantly outperformed
the year-ago quarter figure of $5.36 as well. The company
delivered positive earnings surprise in all of the last 4
quarters, with an average beat of about 1.95%.
MasterCard's growth is driven by its diversified product
basket, technology upgrades along with expansion into
high-potential emerging regions through strategic acquisitions
and alliances. Alongside, ample competitive leverage and a
risk-free balance sheet generate incremental shareholder value
via healthy and regular share buybacks and dividend payouts. At
the current price, MasterCard's dividend yield stands at
Further, the valuation for MasterCard appears impressive. The
shares are trading at a 33% premium to the peer group average on
a forward price-to-earnings basis and 136% premium on a
price-to-book basis. Return on equity of 42.5% and return on
assets of 24.0% are way ahead of the peer group average of 21.6%
and 9.5%, respectively. Even the estimated long-term earnings
growth is pegged at 16.3%, higher than the peer group average of
Apart from MasterCard, other outperformers in the financial
Hilltop Holdings Inc.
Gamco Investors Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
GAMCO INVESTORS (GBL): Free Stock Analysis
HILLTOP HLDGS (HTH): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
VANTIV INC-A (VNTV): Free Stock Analysis
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