Is MasterCard’s Stock a Buy Now?

Mastercard-LogoWith shares of MasterCard (NYSE:MA) trading around $521, is MA an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Technicals on the Stock Chart are Strong

MasterCard (NYSE:MA) has been on a tear over the last couple of years. Since the beginning of 2013 the stock price has been in a fairly pronounced upward trend, rising 6.35 percent this year-to-date and rising 31.98 percent year-over-year. As a benchmark, the S&P 500 has risen 6.87 percent year-to-date, and has risen 13.47 percent year-over-year.

The stock is currently trading above its 20, 50, 100, and 200-day simple moving averages. The stock price was recently 0.40 percent above its 20-day simple moving average, or SMA; 2.91 percent above its 50-day SMA; and 14.30 percent above its 200-day SMA.

MA is less than 3% from all-time highs. The stock broke-out to new highs on increasing volume at the beginning of the year and has been consolidating on light volume since. After some consolidation, the stock should continue its uptrend higher with no resistance in sight.

E = Earnings Are Increasing Quarter-Over-Quarter

Quarterly sales and earnings growth have been…

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