Trade-Ideas LLC identified

MasterCard

(

MA

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified MasterCard as such a stock due to the following factors:

  • MA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $390.5 million.
  • MA traded 13,390 shares today in the pre-market hours as of 8:05 AM.
  • MA is up 2.2% today from yesterday's close.

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More details on MA:

MasterCard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The stock currently has a dividend yield of 0.8%. MA has a PE ratio of 28. Currently there are 17 analysts that rate MasterCard a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for MasterCard has been 4.1 million shares per day over the past 30 days. MasterCard has a market cap of $102.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.36 and a short float of 0.5% with 1.19 days to cover. Shares are down 4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MasterCard as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the IT Services industry and the overall market, MASTERCARD INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $1,008.00 million or 10.64% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.35%.
  • MASTERCARD INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MASTERCARD INC increased its bottom line by earning $3.35 versus $3.09 in the prior year. This year, the market expects an improvement in earnings ($3.56 versus $3.35).

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