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MasterCard (MA) Stock Sinks As Market Gains: What You Should Know
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MasterCard (MA - Free Report) closed the most recent trading day at $413.34, moving -0.71% from the previous trading session. This move lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Heading into today, shares of the processor of debit and credit card payments had gained 5.56% over the past month, outpacing the Business Services sector's gain of 0.66% and the S&P 500's gain of 0.19% in that time.
MasterCard will be looking to display strength as it nears its next earnings release. In that report, analysts expect MasterCard to post earnings of $3.20 per share. This would mark year-over-year growth of 19.4%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 34.32. This represents a premium compared to its industry's average Forward P/E of 14.04.
We can also see that MA currently has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.
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MasterCard (MA) Stock Sinks As Market Gains: What You Should Know
MasterCard (MA - Free Report) closed the most recent trading day at $413.34, moving -0.71% from the previous trading session. This move lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Heading into today, shares of the processor of debit and credit card payments had gained 5.56% over the past month, outpacing the Business Services sector's gain of 0.66% and the S&P 500's gain of 0.19% in that time.
MasterCard will be looking to display strength as it nears its next earnings release. In that report, analysts expect MasterCard to post earnings of $3.20 per share. This would mark year-over-year growth of 19.4%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 34.32. This represents a premium compared to its industry's average Forward P/E of 14.04.
We can also see that MA currently has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.