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MasterCard (MA) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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MasterCard (MA - Free Report) ended the recent trading session at $477.36, demonstrating a -1.2% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.
Shares of the processor of debit and credit card payments witnessed a gain of 7.4% over the previous month, beating the performance of the Business Services sector with its gain of 5.74% and the S&P 500's gain of 3.42%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company is forecasted to report an EPS of $3.72, showcasing a 9.73% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.24 billion, up 10.8% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.29 per share and a revenue of $27.92 billion, representing changes of +16.56% and +11.23%, respectively, from the prior year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 33.8. Its industry sports an average Forward P/E of 16.48, so one might conclude that MasterCard is trading at a premium comparatively.
It's also important to note that MA currently trades at a PEG ratio of 1.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry had an average PEG ratio of 1.28 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.
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MasterCard (MA) Sees a More Significant Dip Than Broader Market: Some Facts to Know
MasterCard (MA - Free Report) ended the recent trading session at $477.36, demonstrating a -1.2% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.
Shares of the processor of debit and credit card payments witnessed a gain of 7.4% over the previous month, beating the performance of the Business Services sector with its gain of 5.74% and the S&P 500's gain of 3.42%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company is forecasted to report an EPS of $3.72, showcasing a 9.73% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.24 billion, up 10.8% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.29 per share and a revenue of $27.92 billion, representing changes of +16.56% and +11.23%, respectively, from the prior year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 33.8. Its industry sports an average Forward P/E of 16.48, so one might conclude that MasterCard is trading at a premium comparatively.
It's also important to note that MA currently trades at a PEG ratio of 1.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry had an average PEG ratio of 1.28 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.