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MasterCard (MA) Outpaces Stock Market Gains: What You Should Know
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MasterCard (MA - Free Report) closed at $361.50 in the latest trading session, marking a +1.67% move from the prior day. This move outpaced the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 12.91%.
Coming into today, shares of the processor of debit and credit card payments had lost 5.17% in the past month. In that same time, the Business Services sector lost 5.68%, while the S&P 500 lost 4.54%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. The company is expected to report EPS of $2.70, down 2.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.61 billion, up 8.58% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $12.13 per share and revenue of $25.03 billion. These results would represent year-over-year changes of +13.9% and +12.55%, respectively.
It is also important to note the recent changes to analyst estimates 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 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. MasterCard is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 29.32 right now. For comparison, its industry has an average Forward P/E of 14.8, which means MasterCard is trading at a premium to the group.
Meanwhile, MA's PEG ratio is currently 1.68. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.18 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 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 $361.50 in the latest trading session, marking a +1.67% move from the prior day. This move outpaced the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 12.91%.
Coming into today, shares of the processor of debit and credit card payments had lost 5.17% in the past month. In that same time, the Business Services sector lost 5.68%, while the S&P 500 lost 4.54%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. The company is expected to report EPS of $2.70, down 2.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.61 billion, up 8.58% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $12.13 per share and revenue of $25.03 billion. These results would represent year-over-year changes of +13.9% and +12.55%, respectively.
It is also important to note the recent changes to analyst estimates 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 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. MasterCard is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 29.32 right now. For comparison, its industry has an average Forward P/E of 14.8, which means MasterCard is trading at a premium to the group.
Meanwhile, MA's PEG ratio is currently 1.68. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.18 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 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.