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MasterCard (MA) Gains As Market Dips: What You Should Know
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MasterCard (MA - Free Report) closed at $357.82 in the latest trading session, marking a +0.75% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.19%.
Coming into today, shares of the processor of debit and credit card payments had gained 3.03% in the past month. In that same time, the Business Services sector gained 6.74%, while the S&P 500 gained 5.85%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release, which is expected to be April 28, 2022. In that report, analysts expect MasterCard to post earnings of $2.19 per share. This would mark year-over-year growth of 25.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.92 billion, up 18.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.21 per share and revenue of $22.18 billion. These totals would mark changes of +21.55% and +17.44%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% lower. MasterCard currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 34.8 right now. Its industry sports an average Forward P/E of 16.64, so we one might conclude that MasterCard is trading at a premium comparatively.
Also, we should mention that MA has 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
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.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.
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MasterCard (MA) Gains As Market Dips: What You Should Know
MasterCard (MA - Free Report) closed at $357.82 in the latest trading session, marking a +0.75% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.19%.
Coming into today, shares of the processor of debit and credit card payments had gained 3.03% in the past month. In that same time, the Business Services sector gained 6.74%, while the S&P 500 gained 5.85%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release, which is expected to be April 28, 2022. In that report, analysts expect MasterCard to post earnings of $2.19 per share. This would mark year-over-year growth of 25.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.92 billion, up 18.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.21 per share and revenue of $22.18 billion. These totals would mark changes of +21.55% and +17.44%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% lower. MasterCard currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 34.8 right now. Its industry sports an average Forward P/E of 16.64, so we one might conclude that MasterCard is trading at a premium comparatively.
Also, we should mention that MA has 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
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.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.