Crista Huff

Stock number one is: 

MasterCard Inc., (SYMBOL: MA) and the headline says: MasterCard Sees Minimal Foreign Exchange Impact on 2013 Revenue, Earnings -- Reuters

MasterCard reiterated a bullish financial outlook for the remainder of 2013, and the market responded by driving the share price to new highs.  Reuters reported that five Wall Street firms immediately raised their price targets on MasterCard.  S&P says, “We see significant opportunity in the healthcare industry's transition to digital payments.“

Earnings growth projections have increased to 18-19 percent per year  over the next three years.  The company has $5 billion in cash, no debt, and a $1.7 billion share repurchase program.

The stock is up 23% since we began recommending shares to investors in March.  After an August correction, it broke out of a trading range on the upside yesterday. 

Our Ransom Note trendline says:  BUY MASTERCARD.

MA Chart

MA data by YCharts

Stock number two is: 

Ulta Salon, Cosmetics & Fragrance Inc., (SYMBOL: ULTA) and the headline says: More Beautiful Returns Ahead – Citi Research

"Beauty retailer Ulta Salon surpassed Wall Street estimates again, reporting second quarter earnings of 70 cents per share, vs. the expected 67 cents, on good revenue growth.  Ulta  opened another 33 new stores in the quarter, with a target of 125 new stores for the full year.  Citi Research likes Ulta’s new CEO, and says, “We…believe her leadership will serve the company well as they continue to focus on growth and expansion.”

Ulta’s earnings are expected to grow 24-27% per year for the next three years.  The PE is 35.

The stock surged on today’s news, breaking out to all-time highs.  Momentum investors should buy on a pullback to catch the next upswing in the share price.


Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
 
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