We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MasterCard (MA) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
MasterCard (MA - Free Report) closed at $378.68 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the processor of debit and credit card payments had gained 11.95% over the past month, outpacing the Business Services sector's gain of 2.85% and the S&P 500's gain of 0.91% in that time.
MA will be looking to display strength as it nears its next earnings release. On that day, MA is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 14.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.97 billion, down 1% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $7.99 per share and revenue of $18.07 billion. These results would represent year-over-year changes of +24.26% and +18.11%, respectively.
Any recent changes to analyst estimates for MA should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% lower. MA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MA is currently trading at a Forward P/E ratio of 47.8. This valuation marks a premium compared to its industry's average Forward P/E of 25.88.
We can also see that MA currently has a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MasterCard (MA) Stock Sinks As Market Gains: What You Should Know
MasterCard (MA - Free Report) closed at $378.68 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the processor of debit and credit card payments had gained 11.95% over the past month, outpacing the Business Services sector's gain of 2.85% and the S&P 500's gain of 0.91% in that time.
MA will be looking to display strength as it nears its next earnings release. On that day, MA is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 14.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.97 billion, down 1% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $7.99 per share and revenue of $18.07 billion. These results would represent year-over-year changes of +24.26% and +18.11%, respectively.
Any recent changes to analyst estimates for MA should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% lower. MA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MA is currently trading at a Forward P/E ratio of 47.8. This valuation marks a premium compared to its industry's average Forward P/E of 25.88.
We can also see that MA currently has a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.