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MasterCard (MA) Dips More Than Broader Markets: What You Should Know
In the latest trading session, MasterCard (MA - Free Report) closed at $387.12, marking a -0.8% move from the previous day. This change lagged the S&P 500's daily loss of 0.75%.
Coming into today, shares of the processor of debit and credit card payments had gained 6.25% in the past month. In that same time, the Business Services sector lost 14.5%, while the S&P 500 gained 2.74%.
Investors will be hoping for strength from MA as it approaches its next earnings release, which is expected to be July 29, 2021. In that report, analysts expect MA to post earnings of $1.71 per share. This would mark year-over-year growth of 25.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 30.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.76 per share and revenue of $18.35 billion. These totals would mark changes of +20.68% and +19.94%, respectively, from last year.
Any recent changes to analyst estimates for MA should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. MA currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MA has a Forward P/E ratio of 50.27 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.65.
Investors should also note that MA has a PEG ratio of 2.27 right now. 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. MA's industry had an average PEG ratio of 1.29 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 121, putting it in the top 48% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.