We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MasterCard (MA) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
MasterCard (MA - Free Report) closed the most recent trading day at $393.76, moving +0.69% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.81%. On the other hand, the Dow registered a gain of 0.39%, and the technology-centric Nasdaq increased by 1.35%.
The processor of debit and credit card payments's shares have seen a decrease of 4.97% over the last month, surpassing the Business Services sector's loss of 7.4% and the S&P 500's loss of 6.19%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. In that report, analysts expect MasterCard to post earnings of $3.20 per share. This would mark year-over-year growth of 19.4%. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, up 13.31% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.14 per share and a revenue of $25.21 billion, signifying shifts of +13.99% and +13.36%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).
Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 32.22. This denotes a premium relative to the industry's average Forward P/E of 12.91.
Investors should also note that MA has a PEG ratio of 1.76 right now. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.15 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MasterCard (MA) Gains But Lags Market: What You Should Know
MasterCard (MA - Free Report) closed the most recent trading day at $393.76, moving +0.69% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.81%. On the other hand, the Dow registered a gain of 0.39%, and the technology-centric Nasdaq increased by 1.35%.
The processor of debit and credit card payments's shares have seen a decrease of 4.97% over the last month, surpassing the Business Services sector's loss of 7.4% and the S&P 500's loss of 6.19%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. In that report, analysts expect MasterCard to post earnings of $3.20 per share. This would mark year-over-year growth of 19.4%. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, up 13.31% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.14 per share and a revenue of $25.21 billion, signifying shifts of +13.99% and +13.36%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).
Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 32.22. This denotes a premium relative to the industry's average Forward P/E of 12.91.
Investors should also note that MA has a PEG ratio of 1.76 right now. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.15 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.