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Why MasterCard (MA) Outpaced the Stock Market Today
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In the latest trading session, MasterCard (MA - Free Report) closed at $444, marking a +0.88% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.4%.
Shares of the processor of debit and credit card payments have depreciated by 1.02% over the course of the past month, underperforming the Business Services sector's gain of 1.47% and the S&P 500's gain of 3.78%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings report is expected on July 31, 2024. On that day, MasterCard is projected to report earnings of $3.51 per share, which would represent year-over-year growth of 21.45%. Our most recent consensus estimate is calling for quarterly revenue of $6.85 billion, up 9.31% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.26 per share and revenue of $27.8 billion, indicating changes of +16.31% and +10.75%, respectively, compared to the previous year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, MasterCard holds a Zacks Rank of #4 (Sell).
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 30.87. This signifies a premium in comparison to the average Forward P/E of 15.39 for its industry.
One should further note that MA currently holds a PEG ratio of 1.74. 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. MA's industry had an average PEG ratio of 1 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why MasterCard (MA) Outpaced the Stock Market Today
In the latest trading session, MasterCard (MA - Free Report) closed at $444, marking a +0.88% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.4%.
Shares of the processor of debit and credit card payments have depreciated by 1.02% over the course of the past month, underperforming the Business Services sector's gain of 1.47% and the S&P 500's gain of 3.78%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings report is expected on July 31, 2024. On that day, MasterCard is projected to report earnings of $3.51 per share, which would represent year-over-year growth of 21.45%. Our most recent consensus estimate is calling for quarterly revenue of $6.85 billion, up 9.31% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.26 per share and revenue of $27.8 billion, indicating changes of +16.31% and +10.75%, respectively, compared to the previous year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, MasterCard holds a Zacks Rank of #4 (Sell).
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 30.87. This signifies a premium in comparison to the average Forward P/E of 15.39 for its industry.
One should further note that MA currently holds a PEG ratio of 1.74. 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. MA's industry had an average PEG ratio of 1 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.