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MasterCard (MA) Outpaces Stock Market Gains: What You Should Know
MasterCard (MA - Free Report) closed the most recent trading day at $354.57, moving +1.5% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.3%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Coming into today, shares of the processor of debit and credit card payments had lost 3.27% in the past month. In that same time, the Business Services sector lost 5.71%, while the S&P 500 lost 2.95%.
Wall Street will be looking for positivity from MasterCard as it approaches its next earnings report date. In that report, analysts expect MasterCard to post earnings of $2.70 per share. This would mark a year-over-year decline of 2.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.62 billion, up 8.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.13 per share and revenue of $25.03 billion. These totals would mark changes of +13.9% and +12.56%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 28.8. This valuation marks a premium compared to its industry's average Forward P/E of 14.06.
It is also worth noting that MA currently has a PEG ratio of 1.65. 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. The Financial Transaction Services was holding an average PEG ratio of 1.11 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.