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) Increases Yet Falls Behind Market: What Investors Need to Know
Read MoreHide Full Article
MasterCard (MA - Free Report) ended the recent trading session at $483.34, demonstrating a +0.53% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.01%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 1.13%.
The processor of debit and credit card payments's stock has climbed by 3.98% in the past month, exceeding the Business Services sector's gain of 3.77% and the S&P 500's gain of 2.5%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company is expected to report EPS of $3.72, up 9.73% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.24 billion, indicating a 10.8% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.29 per share and a revenue of $27.92 billion, indicating changes of +16.56% and +11.23%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 33.64. Its industry sports an average Forward P/E of 16.59, so one might conclude that MasterCard is trading at a premium comparatively.
It is also worth noting that MA currently has a PEG ratio of 1.89. 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 1.28.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MasterCard (MA) Increases Yet Falls Behind Market: What Investors Need to Know
MasterCard (MA - Free Report) ended the recent trading session at $483.34, demonstrating a +0.53% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.01%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 1.13%.
The processor of debit and credit card payments's stock has climbed by 3.98% in the past month, exceeding the Business Services sector's gain of 3.77% and the S&P 500's gain of 2.5%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company is expected to report EPS of $3.72, up 9.73% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.24 billion, indicating a 10.8% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.29 per share and a revenue of $27.92 billion, indicating changes of +16.56% and +11.23%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 33.64. Its industry sports an average Forward P/E of 16.59, so one might conclude that MasterCard is trading at a premium comparatively.
It is also worth noting that MA currently has a PEG ratio of 1.89. 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 1.28.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.