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MasterCard (MA) Gains As Market Dips: What You Should Know
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MasterCard (MA - Free Report) closed at $414.62 in the latest trading session, marking a +0.35% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the processor of debit and credit card payments had gained 4.96% in the past month. In that same time, the Business Services sector lost 0.45%, while the S&P 500 lost 0.12%.
MasterCard will be looking to display strength as it nears its next earnings release. On that day, MasterCard is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 19.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 13.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.13 per share and revenue of $25.2 billion, which would represent changes of +13.9% and +13.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. MasterCard currently has a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 34.06. Its industry sports an average Forward P/E of 13.94, so we one might conclude that MasterCard is trading at a premium comparatively.
Investors should also note that MA has a PEG ratio of 1.86 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MasterCard (MA) Gains As Market Dips: What You Should Know
MasterCard (MA - Free Report) closed at $414.62 in the latest trading session, marking a +0.35% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the processor of debit and credit card payments had gained 4.96% in the past month. In that same time, the Business Services sector lost 0.45%, while the S&P 500 lost 0.12%.
MasterCard will be looking to display strength as it nears its next earnings release. On that day, MasterCard is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 19.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 13.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.13 per share and revenue of $25.2 billion, which would represent changes of +13.9% and +13.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. MasterCard currently has a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 34.06. Its industry sports an average Forward P/E of 13.94, so we one might conclude that MasterCard is trading at a premium comparatively.
Investors should also note that MA has a PEG ratio of 1.86 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.