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MasterCard (MA) Gains But Lags Market: What You Should Know
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In the latest trading session, MasterCard (MA - Free Report) closed at $366.29, marking a +0.65% move from the previous day. The stock lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Coming into today, shares of the processor of debit and credit card payments had gained 5.39% in the past month. In that same time, the Business Services sector lost 15.86%, while the S&P 500 lost 0.85%.
Wall Street will be looking for positivity from MasterCard as it approaches its next earnings report date. On that day, MasterCard is projected to report earnings of $2.19 per share, which would represent year-over-year growth of 33.54%. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, up 24.37% from the prior-year quarter.
Investors should also note any 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. MasterCard is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 34.83. Its industry sports an average Forward P/E of 17.6, so we one might conclude that MasterCard is trading at a premium comparatively.
We can also see that MA currently has a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MA's industry had an average PEG ratio of 1.13 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 169, putting it in the bottom 34% 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) Gains But Lags Market: What You Should Know
In the latest trading session, MasterCard (MA - Free Report) closed at $366.29, marking a +0.65% move from the previous day. The stock lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Coming into today, shares of the processor of debit and credit card payments had gained 5.39% in the past month. In that same time, the Business Services sector lost 15.86%, while the S&P 500 lost 0.85%.
Wall Street will be looking for positivity from MasterCard as it approaches its next earnings report date. On that day, MasterCard is projected to report earnings of $2.19 per share, which would represent year-over-year growth of 33.54%. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, up 24.37% from the prior-year quarter.
Investors should also note any 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. MasterCard is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 34.83. Its industry sports an average Forward P/E of 17.6, so we one might conclude that MasterCard is trading at a premium comparatively.
We can also see that MA currently has a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MA's industry had an average PEG ratio of 1.13 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 169, putting it in the bottom 34% 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.