We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MasterCard's Growth Prospects Look Solid: Time to Buy?
Read MoreHide Full Article
On Nov 18, 2016, we issued an updated research report on MasterCard Inc. (MA - Free Report) . The Purchase, NY-based payment processing giant continues to depict strength in several areas, including a solid revenue growth momentum.
Net revenue increased 12% year-over-year to $8.0 billion for the nine months ended Sep 2016, driven by higher processed transactions, increased cross-border volumes and gross dollar volume. The company remains well poised for growth given its strong market position, solid global brand recognition and the current broader trend of shift towards electronic payments from paper-based forms.
Further, the company remains focused on opportunities through strategic acquisitions and alliances. In an effort to support its mobile-payments initiative and boost online payments volume, in Sep 2016, MasterCard expanded its partnership with PayPal Holdings, Inc. (PYPL - Free Report) . Further, in Jul 2016, MasterCard inked a deal to acquire 92.4% of London-based Vocalink Holdings Limited which operates major payments technology platforms for the U.K. payment schemes. This acquisition is expected to be closed in mid-2017.
However, escalating costs continue to limit the company’s profitability. During the nine months ended Sep 2016, total operating expenses increased 14% (or 16% on a currency-neutral basis) from the prior-year period. The rise was mainly due to continued investments tied with digital initiatives, data analytics and geographic expansion, as well as higher legal costs.
For 2016, management expects total operating expense to increase in the low double-digit range, excluding special items. On a currency neutral basis, it continues to expect a low double-digit increase. Nevertheless, it expects positive operating leverage for the year.
Shares of MasterCard have gained more than 10% over the past three months.
Over the past 30 days, the Zacks Consensus Estimate has moved north 2.7% to $3.75 per share for 2016 and 2.1% to $4.31 per share for 2017.
MasterCard currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Compass Diversified Holdings LLC (CODI - Free Report) : The Zacks Consensus Estimate for 2016 has moved up 1.4% to $1.43 per share for 2016 and 1.7% to $1.78 per share for 2017, over the last 30 days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vantiv, Inc. : Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 1.2% to $2.57 per share and edged up 1% to $2.93 per share for 2017. The company carries a Zacks Rank #2.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MasterCard's Growth Prospects Look Solid: Time to Buy?
On Nov 18, 2016, we issued an updated research report on MasterCard Inc. (MA - Free Report) . The Purchase, NY-based payment processing giant continues to depict strength in several areas, including a solid revenue growth momentum.
Net revenue increased 12% year-over-year to $8.0 billion for the nine months ended Sep 2016, driven by higher processed transactions, increased cross-border volumes and gross dollar volume. The company remains well poised for growth given its strong market position, solid global brand recognition and the current broader trend of shift towards electronic payments from paper-based forms.
Further, the company remains focused on opportunities through strategic acquisitions and alliances. In an effort to support its mobile-payments initiative and boost online payments volume, in Sep 2016, MasterCard expanded its partnership with PayPal Holdings, Inc. (PYPL - Free Report) . Further, in Jul 2016, MasterCard inked a deal to acquire 92.4% of London-based Vocalink Holdings Limited which operates major payments technology platforms for the U.K. payment schemes. This acquisition is expected to be closed in mid-2017.
However, escalating costs continue to limit the company’s profitability. During the nine months ended Sep 2016, total operating expenses increased 14% (or 16% on a currency-neutral basis) from the prior-year period. The rise was mainly due to continued investments tied with digital initiatives, data analytics and geographic expansion, as well as higher legal costs.
For 2016, management expects total operating expense to increase in the low double-digit range, excluding special items. On a currency neutral basis, it continues to expect a low double-digit increase. Nevertheless, it expects positive operating leverage for the year.
Shares of MasterCard have gained more than 10% over the past three months.
MASTERCARD INC Price
MASTERCARD INC Price | MASTERCARD INC Quote
Over the past 30 days, the Zacks Consensus Estimate has moved north 2.7% to $3.75 per share for 2016 and 2.1% to $4.31 per share for 2017.
MasterCard currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Compass Diversified Holdings LLC (CODI - Free Report) : The Zacks Consensus Estimate for 2016 has moved up 1.4% to $1.43 per share for 2016 and 1.7% to $1.78 per share for 2017, over the last 30 days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vantiv, Inc. : Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 1.2% to $2.57 per share and edged up 1% to $2.93 per share for 2017. The company carries a Zacks Rank #2.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>