This Day On The Street
Continue to site
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

5 Rocket Stocks Worth Buying for a Q1 Rally

MasterCard

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Sometimes, playing second fiddle is a pretty good deal. Take MasterCard (MA - Get Report), for instance: the firm is the number-two payment network in the world, with a logo that's printed on around 31% of payment cards in consumers' wallets. Together with industry standard-bearer Visa (V), MasterCard forms a duopoly in the payment business -- and a lucrative one at that.

Because MasterCard is the network, not the lender, the firm's balance sheet is free from exposure to credit risks that could send banks reeling if defaults started climbing. Instead, spending is the only thing that's tied to MasterCard's financial performance. And that spending creates a positive feedback loop for MA's card growth: since MasterCard is accepted almost universally, it's a card that consumers want to carry. And in turn, it's a card that more merchants have to keep accepting.

MasterCard currently carries $5.9 billion in cash and investments and no debt. While that cash position accounts for nearly a tenth of the firm's market capitalization, investors shouldn't see MA as a deep value name -- it trades at a pretty loft multiple. Even so, the uptrend in MasterCard is stellar, and shares aren't showing any signs of backing off new highs.

With a massive tailwind as consumers shift to electronic payments, that valuation premium looks justified.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
MA $92.10 1.80%
MDLZ $43.77 3.50%
LNKD $179.77 0.09%
TSCO $85.28 1.90%
VMW $80.19 -0.01%

Markets

Chart of I:DJI
DOW 16,515.14 +163.76 1.00%
S&P 500 1,973.75 +24.89 1.28%
NASDAQ 4,796.08 +46.1010 0.97%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs