Stock #5 – MasterCard (MA)
MasterCard (MA) is trading at over $200 per share, and the company is thriving right now even though many financial-related companies seem to be under pressure. That’s because MasterCard is so much more than just a credit card company, and the company has done a good job keeping expenses down and cashing in on fees instead of debt-related income.
At the beginning of November, MA reported higher-than-expected quarterly earnings after aggressively trimming marketing expenses and raising fees to banks. Specifically, MasterCard’s third-quarter net income was $452 million, or $3.45 per share, compared with a loss of $194 million, or -$1.48 per share, a year earlier. Wall Street was looking for -$2.94 per share, tallying a 17% earnings surprise for this company.
This makes six quarters in a row that the company’s earnings topped Wall Street’s forecasts significantly. Share prices continue to creep upwards, and I expect big things from MasterCard on the heels of this impressive quarterly report. Buy this stock.
- Poll of the Day