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MasterCard (MA) Hits 52-Week High on Strong Q3 Earnings

On Nov 11, shares of MasterCard Inc.MA touched a 52-week high of $101.75. The momentum in the stock was driven by the company's third-quarter earnings which beat the Zacks Consensus Estimate by 3.4% and were up 5% on a year-over-year basis.

Investors were impressed at MasterCard's ability to outshine estimates, irrespective of a mixed global economic environment and foreign exchange headwinds.

On the other hand, an improved top line on an increased number of processed transactions further cemented investors' confidence in the company.

Notably, MasterCard's shares rose 20% over the past one year compared with a meager return of 1.7% by the S&P 500 during the same time frame. The average volume of shares traded during the day was approximately 4,334 K.

MasterCard reported strong transaction and volume growth metrics, which signify business strength. The company reported a 13% increase in worldwide gross dollar volume, and global processed transaction growth was 12%. Globally, the number of cards grew 8%, with 2.2 billion MasterCard and Maestro branded cards issued.

New deals and arrangement with different carriers also instill investors' confidence. These include the agreement with JetBlue to launch a new co-brand credit card and convert the existing credit card portfolio of the latter, deals with CIDF, the largest travel company in China; Coles, the largest supermarket in Australia; Aeroflot, the largest Russian airline in Russia; and a strategic agreement with Citi.

MasterCard has also started providing Android Pay and Samsung Pay services. The company also initiated a Digital Enablement Express Program, which basically expedites the process of digitizing and tokenizing accounts using MDES.

MasterCard's strong cash flow which enables intelligent capital management has also gone a long way in creating investors' wealth, which is viewed favorably.

MasterCard carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Heartland Payment Systems, Inc. HPY Fiserv, Inc. FISV and Total System Services, Inc. TSS . All these stocks carry a Zacks Rank #2 (Buy).

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MASTERCARD INC (MA): Free Stock Analysis Report

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


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

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