MasterCard Achieves New 52-Week High - Analyst Blog


Shutterstock photo

Riding on a strong growth momentum, the shares of MasterCard Inc. ( MA ) 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 of 0.65%.

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 0.41%.

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 13.0%.

Apart from MasterCard, other outperformers in the financial sector include Vantiv Inc. ( VNTV ), Hilltop Holdings Inc. ( HTH ) and Gamco Investors Inc. ( GBL ). All these stocks carry a Zacks Rank #1 (Strong Buy).

GAMCO INVESTORS (GBL): Free Stock Analysis Report

HILLTOP HLDGS (HTH): Free Stock Analysis Report

MASTERCARD INC (MA): Free Stock Analysis Report

VANTIV INC-A (VNTV): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: GBL , HTH , MA , VNTV

More from


Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by