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MasterCard (MA) Ascends But Remains Behind Market: Some Facts to Note
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In the latest trading session, MasterCard (MA - Free Report) closed at $477.95, marking a +0.24% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.86%. On the other hand, the Dow registered a gain of 1.22%, and the technology-centric Nasdaq increased by 0.51%.
Shares of the processor of debit and credit card payments witnessed a gain of 0.43% over the previous month, beating the performance of the Business Services sector with its loss of 0.74% and underperforming the S&P 500's gain of 2.84%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company is forecasted to report an EPS of $3.22, showcasing a 15% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.34 billion, indicating a 10.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.35 per share and revenue of $28.12 billion, which would represent changes of +17.05% and +12.05%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% lower. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 33.23. This denotes a premium relative to the industry's average Forward P/E of 14.72.
One should further note that MA currently holds a PEG ratio of 1.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial Transaction Services industry stood at 1.28 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
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MasterCard (MA) Ascends But Remains Behind Market: Some Facts to Note
In the latest trading session, MasterCard (MA - Free Report) closed at $477.95, marking a +0.24% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.86%. On the other hand, the Dow registered a gain of 1.22%, and the technology-centric Nasdaq increased by 0.51%.
Shares of the processor of debit and credit card payments witnessed a gain of 0.43% over the previous month, beating the performance of the Business Services sector with its loss of 0.74% and underperforming the S&P 500's gain of 2.84%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company is forecasted to report an EPS of $3.22, showcasing a 15% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.34 billion, indicating a 10.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.35 per share and revenue of $28.12 billion, which would represent changes of +17.05% and +12.05%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% lower. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 33.23. This denotes a premium relative to the industry's average Forward P/E of 14.72.
One should further note that MA currently holds a PEG ratio of 1.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial Transaction Services industry stood at 1.28 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.