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 indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MasterCard (MA) Dips More Than Broader Markets: What You Should Know
MasterCard (MA - Free Report) closed the most recent trading day at $348.08, moving -1.34% from the previous trading session. This change lagged the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Coming into today, shares of the processor of debit and credit card payments had lost 4.63% in the past month. In that same time, the Business Services sector lost 6.49%, while the S&P 500 lost 5.06%.
Wall Street will be looking for positivity from MasterCard as it approaches its next earnings report date. 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 $5.62 billion, up 8.76% 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 +12.57%, respectively.
It is also important to note the recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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 0.02% higher. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 29.09. For comparison, its industry has an average Forward P/E of 14.03, which means MasterCard is trading at a premium to the group.
Investors should also note that MA has a PEG ratio of 1.66 right now. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.11 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 93, putting it in the top 37% 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.