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MasterCard (MA) Outpaces Stock Market Gains: What You Should Know
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MasterCard (MA - Free Report) closed at $399.44 in the latest trading session, marking a +1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Coming into today, shares of the processor of debit and credit card payments had lost 4.45% in the past month. In that same time, the Business Services sector lost 3.08%, while the S&P 500 lost 2.84%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. The company is expected to report EPS of $3.20, up 19.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, up 13.31% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.13 per share and revenue of $25.21 billion. These totals would mark changes of +13.9% and +13.35%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. MasterCard is currently a Zacks Rank #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 32.6. This represents a premium compared to its industry's average Forward P/E of 13.46.
We can also see that MA currently has a PEG ratio of 1.78. 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. The Financial Transaction Services was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MasterCard (MA) Outpaces Stock Market Gains: What You Should Know
MasterCard (MA - Free Report) closed at $399.44 in the latest trading session, marking a +1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Coming into today, shares of the processor of debit and credit card payments had lost 4.45% in the past month. In that same time, the Business Services sector lost 3.08%, while the S&P 500 lost 2.84%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. The company is expected to report EPS of $3.20, up 19.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, up 13.31% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.13 per share and revenue of $25.21 billion. These totals would mark changes of +13.9% and +13.35%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. MasterCard is currently a Zacks Rank #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 32.6. This represents a premium compared to its industry's average Forward P/E of 13.46.
We can also see that MA currently has a PEG ratio of 1.78. 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. The Financial Transaction Services was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.