This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Rocket Stocks to Buy Before the World Ends

Stocks in this article: MA MYL PAY CBS TXN

The payment network business is lucrative for a few reasons. First, it's important to remember that MasterCard is the network, not the card issuer. Since it doesn't extend credit itself (its partner banks do), it doesn't carry any credit risk on its balance sheet. Instead, MasterCard earns its money by taking a tiny cut of every transaction that it facilitates, taking huge margins for its trouble. Because barriers to entry are extremely high for the payment card business, it's unlikely that we'll see any unfamiliar names eating share from MA and its big peers -- even though newcomers like PayPal and Google (GOOG) are making a presence in retail point of sale systems, they're not close to seeing big dollar volume yet.

Ultimately, a rising tide should lift all ships in the payment industry, at least in the short-term. As more consumers around the world transition to the security and convenience of electronic payments, growth opportunities will continue to present themselves to MA's top line. That's why we're betting on shares of this Rocket Stock right now.

Mylan

Generic pharmaceutical maker Mylan (MYL) is seeing similar price performance this year. Year-to-date, MYL is up more than 30% after a handful of new FDA approvals helped to spur guidance higher on the year. Mylan is one of the biggest generics manufacturers in the world, carrying more than 900 products sold worldwide. Generics weren't enough for Mylan, though. The firm has turned to proprietary drugs to find bigger margins, turning out successful specialty offerings headed by the EpiPen.

Mylan's manufacturing capabilities give it a big advantage right now. Because the firm has facilities that are more sophisticated than most other generics makers, it can compete in the biosimilars business, a more challenging space that's rewarded by much higher margins and much less competition. At the same time, as patent-protected specialty drugs become a more significant portion of sales, the firm should establish a big moat compared to other generic drug makers.

Financially, Mylan is in decent shape, even if its debt load is a little higher than at peers. Double digit margins and ample cash generation capabilities help to offset that. With an aging global population likely to create tailwinds for drug firms over the medium-to-long-term, Mylan is well positioned for even more upside in 2013.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs