Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified MasterCard as such a stock due to the following factors:
- MA has 11x the normal benchmarked social activity for this time of the day compared to its average of 13.52 mentions/day.
- MA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $321.3 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on MA:
MasterCard Incorporated provides transaction processing and other payment-related services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The stock currently has a dividend yield of 0.6%. MA has a PE ratio of 28.4. Currently there are 16 analysts that rate MasterCard a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for MasterCard has been 4.2 million shares per day over the past 30 days. MasterCard has a market cap of $85.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.77 and a short float of 1.4% with 2.74 days to cover. Shares are down 9.1% year-to-date as of the close of trading on Wednesday.
rates MasterCard as a
. 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, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 14.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MA's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MA has a quick ratio of 1.60, which demonstrates the ability of the company to cover short-term liquidity needs.
- MASTERCARD INC has improved earnings per share by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MASTERCARD INC increased its bottom line by earning $2.57 versus $2.19 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $2.57).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 13.6% when compared to the same quarter one year prior, going from $766.00 million to $870.00 million.
- The gross profit margin for MASTERCARD INC is rather high; currently it is at 62.38%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 39.96% significantly outperformed against the industry average.
- You can view the full MasterCard Ratings Report.