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MasterCard (MA) Dips More Than Broader Markets: What You Should Know
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MasterCard (MA - Free Report) closed at $283.38 in the latest trading session, marking a -0.93% move from the prior day. This change lagged the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the processor of debit and credit card payments had lost 12.1% over the past month. This has was narrower than the Business Services sector's loss of 15.34% and lagged the S&P 500's loss of 11.67% in that time.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release, which is expected to be October 27, 2022. On that day, MasterCard is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 8.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.66 billion, up 13.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.62 per share and revenue of $22.23 billion, which would represent changes of +26.43% and +17.7%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. MasterCard is currently a Zacks Rank #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 26.93. For comparison, its industry has an average Forward P/E of 15.89, which means MasterCard is trading at a premium to the group.
It is also worth noting that MA currently has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MA's industry had an average PEG ratio of 0.96 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 159, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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MasterCard (MA) Dips More Than Broader Markets: What You Should Know
MasterCard (MA - Free Report) closed at $283.38 in the latest trading session, marking a -0.93% move from the prior day. This change lagged the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the processor of debit and credit card payments had lost 12.1% over the past month. This has was narrower than the Business Services sector's loss of 15.34% and lagged the S&P 500's loss of 11.67% in that time.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release, which is expected to be October 27, 2022. On that day, MasterCard is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 8.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.66 billion, up 13.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.62 per share and revenue of $22.23 billion, which would represent changes of +26.43% and +17.7%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. MasterCard is currently a Zacks Rank #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 26.93. For comparison, its industry has an average Forward P/E of 15.89, which means MasterCard is trading at a premium to the group.
It is also worth noting that MA currently has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MA's industry had an average PEG ratio of 0.96 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 159, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.