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MasterCard (MA) Beats Stock Market Upswing: What Investors Need to Know
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MasterCard (MA - Free Report) ended the recent trading session at $447.07, demonstrating a +1.12% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.8%. Meanwhile, the Dow experienced a rise of 1.51%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
Heading into today, shares of the processor of debit and credit card payments had gained 0.23% over the past month, lagging the Business Services sector's gain of 1.44% and the S&P 500's gain of 4.14% in that time.
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 $3.51 per share. This would mark year-over-year growth of 21.45%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.87 billion, indicating a 9.51% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.23 per share and revenue of $27.81 billion, indicating changes of +16.07% and +10.81%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MasterCard. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. 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 31.07. This indicates a premium in contrast to its industry's Forward P/E of 14.51.
It's also important to note that MA currently trades at a PEG ratio of 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 1.01 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Beats Stock Market Upswing: What Investors Need to Know
MasterCard (MA - Free Report) ended the recent trading session at $447.07, demonstrating a +1.12% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.8%. Meanwhile, the Dow experienced a rise of 1.51%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
Heading into today, shares of the processor of debit and credit card payments had gained 0.23% over the past month, lagging the Business Services sector's gain of 1.44% and the S&P 500's gain of 4.14% in that time.
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 $3.51 per share. This would mark year-over-year growth of 21.45%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.87 billion, indicating a 9.51% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.23 per share and revenue of $27.81 billion, indicating changes of +16.07% and +10.81%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MasterCard. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. 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 31.07. This indicates a premium in contrast to its industry's Forward P/E of 14.51.
It's also important to note that MA currently trades at a PEG ratio of 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 1.01 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.