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MasterCard (MA) Gains But Lags Market: What You Should Know
MasterCard (MA - Free Report) closed at $363.41 in the latest trading session, marking a +1.16% move from the prior day. The stock lagged the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Coming into today, shares of the processor of debit and credit card payments had gained 1.04% in the past month. In that same time, the Business Services sector gained 0.14%, while the S&P 500 gained 2.28%.
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 8.77% 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 +12.56%, respectively.
Investors might also notice recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 29.62. Its industry sports an average Forward P/E of 15.44, so we one might conclude that MasterCard is trading at a premium comparatively.
It is also worth noting that MA currently has a PEG ratio of 1.69. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1 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 54, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.