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2011 Top Stocks: No. 4 Mastercard

Wednesday, 28 Dec 2011 | 3:25 PM ET

Will the No. 4 stock in the top 25 S&P performers in 2011 continue to charge ahead next year, or has it peaked?

Greg Smith, an analyst at Sterne Agee, said Wednesday on “Fast Money” that he expects Mastercard to experience continuing growth in electronic payments.

Best Performing S&P Stock Number: 4
Sharing perspective on the best trades in 2011; including Visa and Mastercard, with Greg Smith, Sterne Agee analyst.

“We expect that to continue even if the economy is not so great,” he said.

Mastercard shares soared almost 67 percent year to date. The stock traded in the $373 range midday. It had a 52-week high of $384.99 and a low of $219.33, with EPS of $17.84.

One headwind pressure could be the financial transaction company’s exposure to Europe, which is larger than that of counterpart Visa.

“Still, at the end of the day, we remind people about this underlying secular growth,” Smith said. “Even if we get a slowdown in consumer spending, people are still going to be putting more on cards a year from now than they are today.”

Trader Pete Najarian said he liked both companies, adding that he was more bullish on Visa due to its lower European exposure.

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“I think that is the name that is going to outperform Mastercard in 2012,” he said.

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Trader disclosure: On Dec. 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Najarian is long AAPL; Najarian is long C; Najarian is long HPQ; Najarian is long MT; Najarian is long PFE; Najarian is long LLY; Najarian is long MRK; Najarian is long MSFT; Najarian is long YHOO; Cortes is long K; Cortes is short EUR; Cortes is short GBP; Cortes is short Crude; Cortes is short Gold; Cortes is short XRT; Cortes is short IYT; Cortes is short CSX; Dicker owns GM; Dicker owns RIG; Dicker owns NBL

For Ron Insana
No disclosures

For David Joyce
No personal, family, or Miller Tabak ownership of DIS shares, nor do we do investment banking for them

For Greg Smith
MASTERCARD (MA): Sterne, Agree makes a market in the shares of the subject company.

SUN TRUST BANKS (STI): Sterne, Agree makes a market in the shares of the subject company.

VISA (V): Sterne, Agree makes a market in the shares of the subject company.

For Stephen Schork
No disclosures

For Michael Gambardella
Lead or Co-manager: J.P. Morgan acted as lead or co-manager in a public offering of equity and/or debt securities for Molycorp within the past 12 months.

Beneficial Ownership (1% or more): J.P. Morgan beneficially owns 1% or more of a class of common equity securities of Molycorp.

Client: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients: Molycorp.

Client/Investment Banking: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as investment banking clients: Molycorp.

Investment Banking (past 12 months): J.P. Morgan received in the past 12 months compensation for investment banking Molycorp.

Investment Banking (next 3 months): J.P. Morgan expects to receive, or intends to seek, compensation for investment banking services in the next three months from Molycorp.

For Rohit "Ro" Chopra
CISCO (CSCO): Wedbush Securities makes a market in the securities of the subject company

Juniper Networks (JNPR): Wedbush Securities makes a market in the securities of the subject company

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