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MasterCard (MA) Declines More Than Market: Some Information for Investors
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MasterCard (MA - Free Report) ended the recent trading session at $387.87, demonstrating a -1.36% swing from the preceding day's closing price. This change lagged the S&P 500's 0.85% loss on the day. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.96%.
The processor of debit and credit card payments's shares have seen a decrease of 4.22% over the last month, not keeping up with the Business Services sector's loss of 3.96% and the S&P 500's loss of 3.02%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company is scheduled to release its earnings on October 26, 2023. It is anticipated that the company will report an EPS of $3.20, marking a 19.4% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.52 billion, indicating a 13.31% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $12.13 per share and a revenue of $25.2 billion, demonstrating changes of +13.9% and +13.31%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 32.41. This indicates a premium in contrast to its industry's Forward P/E of 13.15.
It is also worth noting that MA currently has a PEG ratio of 1.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.17.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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MasterCard (MA) Declines More Than Market: Some Information for Investors
MasterCard (MA - Free Report) ended the recent trading session at $387.87, demonstrating a -1.36% swing from the preceding day's closing price. This change lagged the S&P 500's 0.85% loss on the day. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.96%.
The processor of debit and credit card payments's shares have seen a decrease of 4.22% over the last month, not keeping up with the Business Services sector's loss of 3.96% and the S&P 500's loss of 3.02%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company is scheduled to release its earnings on October 26, 2023. It is anticipated that the company will report an EPS of $3.20, marking a 19.4% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.52 billion, indicating a 13.31% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $12.13 per share and a revenue of $25.2 billion, demonstrating changes of +13.9% and +13.31%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 32.41. This indicates a premium in contrast to its industry's Forward P/E of 13.15.
It is also worth noting that MA currently has a PEG ratio of 1.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.17.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.