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MasterCard (MA) Gains But Lags Market: What You Should Know
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MasterCard (MA - Free Report) closed at $379.04 in the latest trading session, marking a +1.14% move from the prior day. The stock lagged the S&P 500's daily gain of 1.22%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 4.63%.
Coming into today, shares of the processor of debit and credit card payments had lost 3.16% in the past month. In that same time, the Business Services sector gained 5.76%, while the S&P 500 gained 6.22%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.98 per share. This would mark year-over-year growth of 16.41%. Our most recent consensus estimate is calling for quarterly revenue of $6.18 billion, up 12.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.25 per share and revenue of $25.15 billion. These totals would mark changes of +15.02% and +13.11%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 30.58 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.19.
Also, we should mention that MA has a PEG ratio of 1.75. 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 1.15 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 165, putting it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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MasterCard (MA) Gains But Lags Market: What You Should Know
MasterCard (MA - Free Report) closed at $379.04 in the latest trading session, marking a +1.14% move from the prior day. The stock lagged the S&P 500's daily gain of 1.22%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 4.63%.
Coming into today, shares of the processor of debit and credit card payments had lost 3.16% in the past month. In that same time, the Business Services sector gained 5.76%, while the S&P 500 gained 6.22%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.98 per share. This would mark year-over-year growth of 16.41%. Our most recent consensus estimate is calling for quarterly revenue of $6.18 billion, up 12.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.25 per share and revenue of $25.15 billion. These totals would mark changes of +15.02% and +13.11%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 30.58 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.19.
Also, we should mention that MA has a PEG ratio of 1.75. 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 1.15 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 165, putting it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.